The semiconductor giant Nvidia's stint as the world's highest-valued listed company has been short-lived – at least for this time around. The two-day decline in share price has caused the company to lose its top spot.
A share price drop of nearly 7 per cent in conjunction with Thursday and Friday's trading on the New York Stock Exchange has resulted in more than 220 billion dollars in market value being wiped out for Nvidia.
The top spot that the company achieved in impressive fashion earlier in the week has thus been replaced by a third-place ranking on the list of highest-valued companies. Instead, Apple is once again at the top, with Microsoft in its wake.
From an investor perspective, however, one does not see any major drama in the recent decline in share price, rather a consequence of the share having surged nearly 200 per cent over the past year.
It's just normal fluctuations on the stock market where highly valued companies can lose or add several hundred million dollars in market value, nothing has gone wrong with Nvidia, says Russ Mould, investment chief at AJ Bell.
Elsewhere, one sees continued upside potential for the share. The analysis firm Melius raised its target price for the share to 160 dollars as recently as Friday, which is the fifth increase just this year. Nvidia's share price is currently hovering around 126 dollars.
