Nvidia shares slumped on Monday, putting the AI chip darling officially in correction territory even as the rest of the Nasdaq Composite rose to a record.
The chipmaker and de facto artificial intelligence trade has rallied 166% this year amid ongoing excitement for the buzzy technology trend. However, shares have faced a sluggish stretch as of late.
The stock is down 4.5% in December and officially in correction territory, sitting about 11% off its closing high of $148.88 reached last month. The definition of what comprises a market correction can vary. Many generally regard it as a drop of 10% or more from an all-time high close.
The stock closed down 1.7%.
“You need Nvidia, and you need their chips for infrastructure,” said Keith Lerner, co-chief investment officer at Truist. “But I think what the market’s also saying is that there are other beneficiaries beyond that. There’s a rotation within the Magnificent Seven, which we’ve seen a couple times this year already.”
Source: https://www.cnbc.com/2024/12/16/nvidia-falls-into-correction-territory-down-more-than-10percent-from-its-record-close.html