Proactive Investors - NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) shares experienced a slight surge on Monday morning, with the AI chipmaker attempting to recover some of the losses seen from Friday’s fall.
Shares lifted close to 1.5% to US$771 as the markets opened but remain down by close to 10% since last week.
Friday’s drop of around 10% came as part of a wider drop in the market, much of which was led to by rising tensions in the Middle East.
As of Monday, the Magnificent Seven has lost around US$1.1 trillion of their total stock market value in the last six days of trading.
Peter Garnry, head of equity strategy at Saxo Bank, believes the sharp falls from the US tech giants were “even more interesting” because a day prior Taiwan Semiconductor Manufacturing Company said it was expecting 50% annualised growth over the next five years.
“Demand for AI chips remains strong and the outlook for Nvidia looks good, but equities are about changing expectations,” Garnry said.
“The three biggest risks for Nvidia are increased competition, which we know is coming from many different directions, supply chain disruptions around Taiwan, and electricity production that cannot keep up with AI datacentre demand.”
Nvidia reports results on Wednesday 22 May.