NVDA: Nvidia Stock Drops 10% from Record High. Is the Chip Giant Losing Its Grip?

AI-focused company has lost about $200 billion in market cap in the past two weeks and permabears can finally say “called it.”

Key Points:

• Nvidia shares drop 10% from peak.
• Traders brace for earnings season.
• Chip giant still third at the top.
• Nvidia stock NVDA tumbled 2% on Tuesday to clock out of the session at $853.38 a share. The drop added to growing pains for the chip giant whose valuation has taken a big hit over the past two weeks. About $200 billion, or 10%, has been wiped out for that time span.
• It’s a victory for the permabears among us who have been calling for a bubble since Nvidia was trading at $300. But is that retreat a healthy pullback before the company’s earnings report, due May 22, or is it something more? It depends who you ask. Nvidia is still holding the third spot among the world’s biggest companies, right after Apple AAPL, $2.6 trillion, and Microsoft MSFT, $3.1 trillion.
• Nvidia’s formidable rise has left all other big tech heavyweights in the dust this year. With yesterday’s drop factored in, shares are still up nearly 80% on the year. A close second among the Magnificent Seven is Facebook parent Meta META, boasting a 50% advance since early January.