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Nvidia stock is through the roof — Here's how to manage a potential correction

Published 2024-05-24, 04:28 p/m
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Investing.com - Nvidia (NASDAQ:NVDA) shares are skyrocketing. In just two days, the tech company's stock has risen more than 10%, and its market value has surged by approximately $243.376 billion, surpassing $2.5 trillion and solidifying its position as the third most valuable company on Wall Street.

This surge follows the release of an impressive quarterly report, the announcement of a dividend increase, and a stock split, all of which have propelled the stock upward. The outlook remains positive due to the strong demand for AI processors.

But beware! With this explosive rise, the stock could be in overbought territory and somewhat overvalued. Additionally, there are risks of significant drops due to external factors such as a cooling demand or trade blockades, which could intensify if Donald Trump is elected in the upcoming U.S. presidential elections.

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If your interest in Nvidia is tech-focused, InvestingPro's AI has also included it in the "Tech Titans" strategy.

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