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Nvidia Stock Falls 13%, Biggest Three-Day Drop Ever Erases $430 Billion

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3 months ago

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Nvidia Corp. shares entered correction territory on Monday, the biggest three-day value loss for any company in history.

The AI-focused chipmaker experienced a 6.7% drop, its largest one-day percentage decrease since April.

This marks the third consecutive negative session for Nvidia, culminating in a total three-day loss of approximately $430 billion from its market capitalization.

The stock’s 13% decline over the period surpasses the 10% threshold that typically defines a correction.

This dramatic drop has not only affected Nvidia but also weighed heavily on the semiconductor sector, with the Philadelphia Stock Exchange Semiconductor Index falling 3% on Monday.

Other notable declines included Broadcom Inc. with a 4% drop, Qualcomm Inc. down 5.5%, and ARM Holdings Plc slipping by 5.8%.

US-listed shares of Taiwan Semiconductor Manufacturing Co. also shed 3.5%.

This significant market shift has reduced Nvidia’s valuation below the $3 trillion threshold, positioning it behind both Microsoft Corp. and Apple Inc. in terms of market size.

Nvidia briefly held the title of the world’s largest stock last week before this downturn.

“In the near-term, it is plausible that investors begin suffering from AI-fatigue or become more broadly concerned about index concentration,” said Neville Javeri, portfolio manager and head of the Empiric LT Equity team at Allspring Global Investments.

Despite the recent slump, Nvidia remains one of the top performers of the year, with shares up nearly 140% year-to-date, making it the second-best performer among S&P 500 Index components, just behind Super Micro Computer Inc., another favored AI stock.

Earlier in the year, Nvidia faced a similar drawdown of about 20% but quickly rebounded to achieve all-time highs. The current downturn, however, has amplified concerns about the company’s valuation.

Nvidia trades at 21 times its estimated sales over the next 12 months, making it the most expensive stock in the S&P 500 by this measure.

Nevertheless, it continues to be well-regarded on Wall Street, with nearly 90% of analysts tracked by Bloomberg recommending a buy and an average price target suggesting about a 12% upside from current levels.

“The momentum in Nvidia and AI stocks in general has been staggering,” said Charlie Ashley, portfolio manager at Catalyst Funds. “In terms of investing, I would not be a contrarian right now.”

Nvidia’s rapid ascent, driven by high demand for its AI processing chips, has been a double-edged sword, fueling both optimism and apprehension among investors.

The stock’s recent performance underscores the volatile nature of the tech market and the ongoing debate about the sustainability of its high valuations amidst economic uncertainties.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Dividends

Access Holdings to Pay N15.99 Billion Interim Dividend, Aig-Imoukhuede to Receive N1.151 Billion

Published

5 days ago

on

September 24, 2024

By

Aigboje Aig-Imoukhuede

Access Holdings Plc has announced an interim dividend of 45 kobo for every ordinary share of 50 kobo held in the company in the first half (H1) of 2024.

With 35.545 billion in outstanding shares, this translates to N15.99 billion in interim dividend. However, Aigboje Aig-Imoukhued, the chairman of Access Holdings, will take home N1.151 billion in dividend.

The chairman presently holds 119,231,715 direct shares and 2,438,256,720 indirect shares in the company, according to the company’s latest financial statement obtained by Investors King.

According to the lender, subject to appropriate withholding tax the dividend will be paid to shareholders whose names appear on the Register of Members at the close of business on Thursday, October 3, 2024.

The bank will pay dividends on Thursday, October 17, 2024 to all shareholders whose names appear on the Register of Members at the close of business on Thursday, October 3, 2024.

These shareholders are expected to have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their bank accounts.

However, shareholders who are yet to complete the e-dividend registration are advised to download the Registrar’s E-Dividend Mandate Activation Form, which is also available on https://theaccesscorporation.com/ and complete and submit it to either the Registrar, their respective Banks or any Access Bank Plc branch.

Shareholders with dividend warrants and share certificates that have remained unclaimed or are yet to be presented for payment or returned for validation are advised to complete the e-dividend registration or contact the Registrar.

Access Holdings grew profit after tax by 108% to N347.922 billion from N167.601 billion filed in H1 2023 while gross earnings jumped 133.5% from N940.311 billion in the first half (H1) of 2023 to N2.196 trillion in H1 2024.

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Nigerian Exchange Limited

Stock Investors Gain N131 Billion on Tuesday

Published

1 week ago

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September 18, 2024

By

Nigerian Exchange Limited - Investors King

Nigeria’s equities market opened the holiday-shortened trading week in green as investors bought banking and consumer goods stocks despite record profit taking in insurance, industrial, oil & gas stocks.

“Looking forward, the equities market is expected to retain its buy interest as investors cherry-pick undervalued stocks. However, given the sentiment that rates might have peaked in the fixed income and money markets and investors locking in on current rates, we expect some bearish undertone to persist in the equities market,” according to United Capital research analysts.

The analysts said the bulls “will remain incentivised to persist in bargain hunting, given the tremendous mid-long-term opportunities in the equities market. Fund managers and businesses may begin to entertain mid-long-term (≥6 months) investment objectives, cherry-picking only sound equities with strong fundamentals and ongoing corporate actions. This strategy will maximise market opportunities, thereby optimising portfolio returns”.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities market capitalisation appreciated by 0.23 percent and N131billion from preceding day’s 97,456.62 points and N56.002 trillion respectively to 97,685.63 points and N56.133 trillion.

The market’s year-to-date (YtD) return rose to 30.64 percent.

According to Meristem research analysts, “While we expect subdued participation in the Nigerian equities market this week, we anticipate that buying activity will outweigh profit-taking. Our outlook is hinged on the belief that no major negative catalysts are expected to shift market direction this week. We anticipate that investors will continue selective buying, seeking opportunities across various sectors.

“Additionally, macroeconomic developments and corporate actions from companies could stimulate moderate buying interest in the market. We also do not foresee a significant shift towards the fixed-income market as yields have started to stabilize. However, we acknowledge the potential for profit-taking as short-term investors may look to capitalize on recent gains. Overall, we expect the market to close in the green zone this week,” Meristem analysts said.

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Dividends

Guaranty Trust Holding Company Declares N1 Interim Dividend, Sets October 7 for Payout

Published

2 weeks ago

on

September 13, 2024

By

GTBank -Investors King

Guaranty Trust Holding Company Plc has announced its plan to pay a sum of N1 per share of 50 kobo as interim dividends, to all registered shareholders on October 7, 2024.

According to a recent statement issued by the company on NGX , “the dividend is subject to withholding tax deduction, and will be paid to shareholders whose names appear in the register as of September 25, 2024.”

In its recently released audited consolidated and separate financial statements for the period ended June 30, the Group reported profit before tax (PBT) of N1.004 trillion, becoming the first Nigerian financial institution to cross the N1 trillion mark in profit.

This represented a 206.6 percent increase over N327.4 billion recorded in the corresponding period that ended June 2023.

The group’s profit for the period was slated at N905.67 billion, a 222 percent increase from 280.52 recorded in the corresponding period that ended June 2023.

“On October 7, 2024, the dividend will be paid electronically to ordinary shareholders whose names appear on the Register of Members as at September 25, 2024, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly to their bank accounts,” the statement said.

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