Nvidia Rebounds, Regains $3 Trillion Market Cap

Nvidia’s stock saw a strong rebound on Tuesday, recovering more than 6% following a recent three-day sell-off. This gain helped Nvidia’s market capitalization climb back above the $3 trillion mark, reclaiming its position after briefly losing its status as the world’s most valuable public company.

Closing at $126.09, Nvidia’s stock bounced back from a dip to $118.11 on Monday. The company’s market cap had briefly dropped to $2.9 trillion, the first time it traded below $3 trillion since June 11. Despite the recovery, Nvidia still has ground to cover to reach its pre-sell-off price of $135.58, when it briefly surpassed both Microsoft and Apple as the most valuable company globally.

In comparison, Nvidia’s market cap still trails behind Apple at $3.2 trillion and Microsoft at $3.3 trillion, both of which saw marginal gains in their share prices on Tuesday.

The recent decline in Nvidia’s share price lacked a clear triggering event but followed a robust year-to-date rally. Even with the downturn, Nvidia shares have appreciated more than 150% since the beginning of the year, when they traded around $48. After a 10-for-1 stock split reduced its share price from $1,210 to $120, Nvidia’s ascent has been driven by the burgeoning demand for its chips and graphics processing units amid the artificial intelligence boom. This surge in demand has been fueled significantly by tech giants such as Microsoft, Meta, and Amazon.