Nvidia shares rebound over 7% after biggest single-day crash in nearly 2 years; what led to the sentiment reversal?
Mint · A Ksheerasagar ·
Nvidia shares rebounded 7.3% Friday after plunging 9.3% in the previous session, as investors weighed political risks to data centre expansion. The stock remains 25% below its peak amid concerns about AI investment costs, regulation and whether massive spending will generate sufficient returns.
Nvidia Corp., the poster child of the artificial intelligence (AI) trade, is attempting a recovery in Friday's trade on November 6, surging 7.3% to an intraday high of $194.90.
The rally comes after a 9.3% plunge in the previous session, marking the stock's biggest single-day decline in nearly two years, as Wall Street grew concerned that a Democrat-led Congress could slow down data centre expansion.
The sharp sell-off also dealt a blow to Nvidia CEO Jensen Huang's wealth, wiping $150.9 billion off his net worthand pushing him down four places to 13th on the wealth rankings, from ninth previously. He was among the biggest wealth losers on the day, alongside SpaceX founder Elon Musk and Oracle co-founder Larry Ellison.