Nvidia’s Short Reign Ends: Dropped From No.1 Position

After a short reign in America’s stock market, Nvidia fell from its throne and slipped to third place in market capitalization. As of Monday, June 24, the leading chipmaker saw a 13% decline in its share price, amounting to around $430 billion. This is after a nearly 200% surge in its share price in 2024. As per Companiesmarketcap.com, the most valuable company in the world is Microsoft at $3.3 trillion, closely followed by Apple at $3.1 trillion and then Nvidia at $2.9 trillion. 

Experts believe there is no specific reason for Nvidia’s sudden plunge in share prices. Moreover, this decline was seen across the spectrum, with Super Micro Computers’ share price down by 9%, Dell’s down 5%, and Arm’s down 6%. Qualcomm and Broadcomm also saw a decline, with their shares going down 5.5% and 3.7%, respectively. 

A spokesperson from Hightower, an American Financial planning company, said, “I don’t think the party is over, but it’s had a heck of a run and there are so many other places in technology that offer better attractive risk/reward.” Moreover, the entry of new players in the chip and AI market has also turned the tide for existing companies. However, Shankar Trivedi, Senior vice president of the Enterprise Business at Nvidia, said that Nvidia is looking to “partner with everybody.

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Meanwhile, Russ Mould told Blomberg, “It’s just standard market fluctuations.” He further added that these market fluctuations are more evident in high market-cap companies like Nvidia and Microsoft, hence the disturbance in share price. He mentioned that the fundamentals of Nvidia are strong, and this volatility is likely to be short-lived. Many experts believe that Nvidia will regain its number-one spot once the market fluctuations stop. Moreover, Nvidia is also coming out with some state-of-the-art chips and graphic processing units, which will further help the company cement its position in the market. 

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