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NVIDIA lost the crown to Microsoft and Apple: Has the euphoria ended?

Published 2024-06-21, 04:40 p/m
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Investing.com - NVIDIA Corporation (NASDAQ:NVDA) on Tuesday became the most valuable company in the world in stock market terms, reaching a market capitalization of $3.33 trillion. However, it did not hold the crown for long.

From Thursday to midday Friday, shares of this tech giant have corrected around 6.8%, wiping out approximately $226.1 billion in market capitalization in two days. On Friday, Nvidia's shares closed at $126.57, 3.22% below the previous closing price.

With this, Nvidia has dropped back to the third position among the most valuable companies, surpassed by Apple (NASDAQ:AAPL), with a capitalization of $3.2 trillion, and Microsoft (NASDAQ:MSFT), with $3.34 trillion. Even so, Nvidia has managed to remain part of the select group of companies with a market value exceeding $3 trillion.

While the last two sessions have not been bright for Nvidia, its shares still maintain a gain of approximately 4.8% since its 10-to-1 stock split two weeks ago, an event that has increased interest from investors, mainly retail. So far this year, its performance exceeds 213%.

Additionally, the company remains a major player in the market, and its shares continue to rise following new server orders from Elon Musk's AI startup.

Investors with strategic positions in the tech sector now have the opportunity to know in a timely manner whether this drop could be an opportunity to invest in Nvidia or if it would be a sell signal.

If you are an InvestingPro subscriber and follow the ProPicks strategies “Tech Titans” or “Outperform the S&P 500,” you knew months ago about Nvidia's potential. ProPicks strategies are AI-driven selections with stocks that have the highest potential to outperform market benchmarks and are updated monthly, informing investors of which stocks to buy and sell each month.

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The potential of these strategies

Through “backtesting,” it is possible to observe that in the period between January 1, 2013, and June 1, 2024, “Outperform the S&P 500” has delivered an explosive return of 1,052.6%, surpassing the S&P 500’s return of 270% by 782.6%.

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How to access the strategies

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If you are subscribed to InvestingPro, you can also access Nvidia’s ProTips, which provide clear perspectives highlighting the company's positive and negative aspects based on extensive financial data analysis, as well as market value metrics, analysts' target prices, company valuations, and hundreds of other metrics to conduct your analysis and make the best decision.

With your access, you will know, for example, that there are analysts optimistic about Nvidia's potential. InvestingPro reports that the consensus among analysts assigns an average target price of $130.08 to Nvidia, but some assign, at the high end, a price of up to $200 per share.

Among the latest analyst updates is Melius, who reaffirmed its "Buy" rating with a target price of $160.00.

What about Microsoft and Apple?

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These stocks have been part of this strategy since its launch, so if you want to achieve maximum returns, this selection will tell you how to use these stocks strategically to achieve even greater benefits.

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Note to the reader: This article is not an investment recommendation. It is suggested to conduct thorough analysis using InvestingPro's tools before making any investment.

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