In June of this year, NVIDIA’s capitalization exceeded the important mark of $ 1 trillion, and so far the company has managed to stay above it, but the events of the last few months are trying to break the optimism of investors, who are on a fast track Development set artificial intelligence systems. The company has lost $180 billion of its capitalization since the end of August and this week suffered its worst two-day share price decline in more than a year.
As explained Bloomberg, this week NVIDIA shares lost 8.5% of their price in just a few trading sessions, and the catalyst for this dynamic was the introduction by the US of new restrictions on the export of not only computing accelerators, but also computing accelerators to a number of countries. Authorities flagship gaming graphics solutions. In China, retail prices for the GeForce RTX 4090 have already doubled and a shortage immediately arose, since from now on there will be problems with the delivery of graphics cards of this model to China.
All the mantras heard by NVIDIA management about the absence of a serious threat to short-term sales dynamics due to new US sanctions do not find adequate understanding among investors. As Bloomberg explains, many analysts are aware that NVIDIA’s financial performance will deteriorate in the short term due to US sanctions, but most remain optimistic about good sales momentum in the long term. At the same time, the company’s shares continue to lose value this week.
In mid-September, NVIDIA shares even tried to rise in price over 15 trading sessions and during this period they managed to increase the price by 14%, but overall they could not avoid losses as a result and September became the worst month for the company’s shares since the beginning of this year. Overall, however, NVIDIA stock is up 194% since the beginning of January, clearly standing out from the general range of stock indices given the current difficult macroeconomic conditions. If the company’s securities continue to fall in price by the end of the week, they will be at their worst price since August.