After only one day, Nvidia lost its position as the world's number one stock before its buttocks even heated up.
On June 24th, Nvidia's stock price fell again, and the decline increased to 6.68%. This is the third consecutive trading day of decline in Nvidia's stock price, with a cumulative decline of nearly 13%. The total market value has evaporated by 425 billion US dollars (approximately 3.093 trillion yuan).
Nvidia's current total market value has fallen below $3 trillion, to $2.91 trillion, behind Microsoft and Apple. Microsoft has a total market value of $3.33 trillion, currently the world's largest company by market value, while Apple has a total market value of $3.19 trillion, ranking second.
On June 18th, Eastern Time, Nvidia's stock price closed at $135.58, with a total market value of $3.335 trillion, surpassing Microsoft ($3.317 trillion) and Apple ($3.286 trillion) in one fell swoop, and Nvidia became the world's largest in total market value. On the 19th, Nvidia's stock price hit a historic high of $140.76 during trading, and then began a round of decline.
On Monday, Nvidia's decline was the largest in two months. Nvidia's sharp decline also hit technology stocks, with all US chip stocks wiped out and the Philadelphia Stock Exchange Semiconductor Index closing 3.02% lower. Broadcom, TSMC, and Qualcomm closed down 4%, 3.54%, and 5.5% respectively. Nvidia's stock price plummeted, which also had an impact on A-shares. On Tuesday, the A-share market experienced a half wire decline, with the semiconductor sector index falling 3.37%.
On the news front, there are reports that Simona Jankowski, Vice President of Investor Relations and Strategic Financing at Nvidia, has switched jobs and will serve as Chief Financial Officer (CFO) at a startup company. Before joining Nvidia in 2017, Jankowski was also a veteran analyst at Goldman Sachs Group.
However, the biggest impact on stock prices is the reduction of holdings by executives, including founder and CEO Huang Renxun.
According to information disclosed by the US Securities and Exchange Commission, on June 21st local time, Huang Renxun sold 120000 shares of Nvidia stock again. Statistics show that Huang Renxun reduced his holdings of 720000 shares of NVIDIA shares in seven trading days from June 13th to 21st, with a total cash out amount of nearly 95 million US dollars, equivalent to approximately 690 million yuan. In addition to Huang Renxun, some executives of Nvidia are also reducing their holdings and cashing out.
The last time Huang Renxun sold NVIDIA stocks was in September last year, when he exercised his rights to buy 29684 NVIDIA stocks at a price of $4 per share and sold them, with an average selling price of $455.75, earning nearly $13.5 million.
According to data, as of March 25th this year, Huang Renxun has accumulated nearly 93.5 million shares of NVIDIA stock, accounting for approximately 3.8% of the company's total outstanding shares, and currently holds a stock market value of approximately 11 billion US dollars.
Since 2023, Nvidia's stock price has emerged from a bull market trend, with a cumulative increase of 239.5% that year. In 2024, Nvidia's stock price continued its bull market trend, with a cumulative increase of 174% before the last three days of decline. Even after three days of sharp decline, the growth rate of old houses within the year is still as high as 138.6%. If calculated based on the closing price of $14.58 at the end of 2022 and reaching a high of $140.76 on June 19 this year, Nvidia's stock price has risen by 865.43% in half a year.
Regarding the continuous decline in Nvidia's stock price, some investment strategists believe that Nvidia's stock has been "excessively pursued". Some investors also believe that it is normal for investors to seize the opportunity to lock in returns after experiencing a bull market for about a year and a half. Apple's announcement of its entry into the field of artificial intelligence at the Global Developers Conference and other major news will also lower some investors' expectations for Nvidia. The current changes in the total market value rankings of the three major technology giants in the US stock market also reflect investors' expectations for the future development of technology giants and the fierce competition in the technology field.
The rapid development of AI technology has triggered a strong demand in the market for high-performance AI chips. Nvidia has become a leader in this field with GPUs, occupying over 80% of the AI chip market share. Recently, it has also launched a new generation of chips to expand its data center business. At the same time, Nvidia released a second quarter revenue forecast that exceeded market expectations this year and announced a stock split of 10 shares per share.
There are reports that Nvidia will begin shipping its next generation of artificial intelligence chips called Blackwell later this year, which some analysts say may bring another significant growth cycle for Nvidia and its partners.