Nvidia plummets by 2 trillion

Nvidia's stock price has been a bit sluggish recently, evaporating $300 billion in a week, equivalent to more than 2 trillion yuan.

Yesterday (November 27), Nvidia's stock price fell 1.15%, the latest stock price was $135.34 per share, and the total market value was 3.31 trillion.

It is worth noting that this is the sixth consecutive trading day that Nvidia's stock price has fallen.

Nvidia's stock price once hit a record high of $152 last week, and now it has fallen more than 10% from the highest point, and its market value has evaporated more than 300 billion US dollars from the highest point, equivalent to more than 2 trillion yuan.

Nvidia's recent continuous decline in stock prices may be related to the previously released financial report.

After the market on November 20 (Wednesday) local time, Nvidia announced its third quarter results for fiscal year 2025 ending October 27, 2024.

The company's quarterly revenue in the reporting period was $35.1 billion, a year-on-year increase of 94% and a month-on-month increase of 17%.

Although this data looks impressive, this is the first time this year that the year-on-year growth rate in a single quarter has not doubled, and the month-on-month growth rate has also declined.

Simply put, Nvidia's growth rate is declining, lower than market expectations, and has caused market concerns about its slowing growth.

Not only has the growth rate slowed down this quarter, but Nvidia's revenue guidance for the quarter is even more pessimistic. Nvidia expects revenue in the fourth quarter to increase by about 70% year-on-year, because the year-on-year growth rate of 94% this quarter has already slowed down, and the guidance for the next quarter is only 70%, and the growth rate will slow down further.

Although the growth rate has slowed down and the stock price has been adjusted continuously, institutions are still strongly optimistic about Nvidia's future.

On Wednesday (November 27), analysts at Citigroup included Nvidia in the "positive catalyst watch list" for the next 90 days in their latest report, believing that its stock price may soar to a target price of $175 in early 2025, an increase of up to 27%.

The main reason why Melius Research analyst Ben Reitzes is optimistic about Nvidia is that major technology companies continue to invest heavily in the field of artificial intelligence, and Nvidia is the company that benefits the most.