Shares of Nvidia ( NVDA ) rose more than 2% in premarket trading on Wednesday, after the previous day’s gains reversed a three-day slide that wiped out about $430 billion of the AI chip company’s market capitalization.
Shares rose more than 6% to close at $126.09 on Tuesday, after falling nearly 13% in the previous three sessions, as investors pulled out of the hottest AI game of the year.
Nvidia briefly surpassed Microsoft ( MSFT ) to become the world’s most valuable company a week ago. The chip heavyweight gave that title back as soon as the three-day sale began.
Kenny Polgari, managing partner at Case Capital Advisors, told Yahoo Finance on Tuesday: “I think it’s overblown. I don’t think people should be nervous about what’s going on with Nvidia.
“I will use this weakness as an opportunity,” he said, referring to the timing of the collapse.
“We’re at the end of the quarter, so it’s a period that marks a quarter. You have a lot of big asset managers who are trying to adapt and restructure,” he said.
Bolgari said he wouldn’t be surprised if the stock fell “another 5% or 8%.”
On Tuesday, Nvidia’s market cap climbed back around the $3 trillion mark, though it fell short of Microsoft’s or Apple’s ( AAPL ) valuation.
Nvidia has been instrumental in driving the S&P 500 (^GSPC) and Nasdaq (^IXIC) to repeat record highs in 2024.
The Santa Clara, Calif.-based company completed a 10-for-1 stock split on June 10.
Ines Ferre is a senior business reporter at Yahoo Finance. Follow her on X @ines_ferre.
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