Nvidia Corp. stock shares are rallying following an initial sell-off by investors last week. Holders appear to be doubling down on their investments in artificial technology and the company’s AI chips.
Nvidia stock is up 15% this week, and its market cap has risen by more than $260 billion. This recent surge puts NVDA on pace for its best weekly performance since May 2023. The surge follows further allegiance by major tech firms like Meta, Google, and Microsoft pledging billions in AI investments. This new bullish sentiment is once again causing Nvidia and the entire AI sector to boom.
This rebound is extremely promising, considering just seven days ago today, the stock had its worst-performing day in four years. Nvidia shares plunged by 10% amid fears that enthusiasm and hype around AI chips got ahead of itself.
Nvidia is the far-and-way leader in the artificial intelligence sector due to its chip technology. However, it’s not soaking up all the spotlight. The entire semiconductor industry is booming, as the Philadelphia Stock Exchange Semiconductor Index suggests. The SOX is up 9.7% this week, compared with a 2.8% gain in the broader S&P 500 Index and a 4% jump in the tech-heavy Nasdaq 100 Index.
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At press time, NVDA is trading at 871.54, up over 40% in the past 24 hours to close out the week. The shares don’t show any sign of slowing down either.