Nvidia stock is set to continue to rebound after a 3-day pause

Nvidia (NVDA) stock rose more than 2% in premarket trading on Wednesday, after the previous day’s gains reversed a three-day decline that wiped nearly $430 billion off the AI ​​chip giant’s market value.

Shares rose more than 6% on Tuesday to close at $126.09 a share after falling nearly 13% in the previous three sessions as investors exited the year’s hottest AI games.

Nvidia hit a record closing high exactly one week ago when it briefly surpassed Microsoft ( MSFT ) as the world’s most valuable company. The heavyweight chip reclaimed that title as the three-day sell-off got underway.

“I think it’s very overblown. I don’t think people should be nervous about what’s going on with Nvidia,” Kenny Polcari, managing partner at Kace Capital Advisors, told Yahoo Finance on Tuesday.

He added: “I will exploit this weakness as an opportunity,” referring to the timing of the decline.

“We are at the end of the quarter, so this is a defining period for the quarter. There are a lot of large asset managers who are trying to reposition themselves and rebalance,” he said.

Polcari added that he wouldn’t be surprised if the stock fell “another 5% or 8%.”

On Tuesday, Nvidia’s market capitalization rose again to hover around the $3 trillion level, although it is still below the valuations of Microsoft or Apple (AAPL).

Nvidia played a pivotal role in boosting the S&P 500 (^GSPC) and Nasdaq (^IXIC) to repeated record highs in 2024.

The Santa Clara, California-based company completed a 10-for-1 stock split on June 10.

Ince Ferry is Yahoo Finance’s chief business correspondent. Follow her on X in @ines_ferre.

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