Here's What I Think Is Going On With Nvidia Stock

By the end of last year, investors had become accustomed to top performance from Nvidia (NASDAQ: NVDA). The stock had delivered quarter after quarter of gains thanks to the company's leadership in the artificial intelligence (AI) chip market. And any surprises had been positive, such as the company becoming the first ever to reach $4 trillion in market value -- that happened last summer -- or the stock closing at a new record high as it did back in October. But in the first quarter of this year, Nvidia's surprise for investors wasn't a positive one. Instead of reaching an exciting new milestone, the stock declined by more than 6%. The reason for such a move had to do with pressure on AI stocks as well as the general economic and geopolitical environment. Investors worried that AI stocks had climbed too high, too fast -- and future revenue potential may not justify such levels. Meanwhile, the war in Iran made investors more cautious, which meant they hesitated to invest in growth stocks such as Nvidia.In recent weeks, though, investors have returned to Nvidia stock -- and last week it closed at a record high, bringing the company to a $5 trillion market value. Why such a rapid shift in sentiment? Here's what I think is going on with Nvidia stock...Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool