Nvidia's Sudden 14% Fall In Stock Value Drops The Tech Titan Back To Third Globally

• Nvidia recently lost $500 billion in market value, demonstrating the extreme volatility in the market today.
• Despite this major loss, Nvidia's shares have increased by 141% over the past year.
• Nvidia's recent 14% stock price drop has not deterred investor confidence.

NVIDIA Corp NVDA recently experienced a stark reminder of the stock market's volatility, losing $500 billion in market value. This highlights the unpredictable swings even the strongest tech giants face today.

Despite this setback, Nvidia had an impressive year, with shares rising 141% due to the booming AI sector.

Investor enthusiasm for AI briefly made Nvidia the world's most valuable company, a title it quickly lost, though it remains third globally.

The recent 14% drop in Nvidia’s stock price hasn't shaken stakeholder confidence, given the company's strong overall performance.

However, this decline has sparked debates about whether such high valuations in the AI boom are sustainable, or if Nvidia’s market performance is a sign of a speculative bubble, or a realistic reflection of its future potential in AI.

Financial indicators show a mixed picture. After dropping below the daily 20 simple moving average at $120, Nvidia’s stock might fall to support at the psychological $100 level, marked by the daily 50 simple moving average.

This level could be a strong turning point if the stock drops further. However, the overall upward trend suggests this might just be a typical market correction, a pause after the stock’s rapid growth.

Investors are watching closely, knowing that falling below $100 could signal a more definite end to the current growth phase.

Yet, with major corporations investing heavily in AI infrastructure, there is still strong belief in AI’s transformative potential, indicating that Nvidia's growth could remain solid.

After the closing bell on Friday, June 21, the stock closed at $126.57, trading down by 3.27%.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.