Shares of Nvidia ( NVDA ) rose more than 3% Tuesday morning, reversing a three-day decline that wiped about $430 billion from the AI chip giant’s market cap.
Shares have fallen nearly 13% since Thursday as investors exited the stock, which hit an all-time high exactly a week ago when it briefly surpassed Microsoft (MSFT) as the world’s most valuable company.
The chip heavyweight gave that title back when the three-day sell-off began.
“I think it’s way overblown. I don’t think people should be nervous about what’s happening with Nvidia,” Kenny Polcari, managing partner at Kace Capital Advisors, told Yahoo Finance on Tuesday.
“I would use this weakness as an opportunity,” he added, pointing to the timing of the decline.
“We’re at the end of the quarter, so it’s a quarterly marking period. You have a lot of big assets trying to realign and balance,” he said.
Polcari added that he wouldn’t be surprised if the shares fell “another 5% or 8%.”
On Tuesday, Nvidia’s market cap climbed back to hover around the $3 trillion market cap, though it was still below the valuations of Microsoft or Apple (AAPL).
Nvidia has played a crucial role in taking the S&P 500 (^GSPC) and the Nasdaq (^IXIC) to repeated all-time highs in 2024.
The Santa Clara, California-based company completed a 10-for-1 stock split on June 10.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X @ines_ferre.
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