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Nvidia shares are down 10% this month, with the stock feeling what traders call the “September effect.”
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That collapse wiped less than $180 billion off the semiconductor giant’s market capitalization.
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Nvidia remains the S&P 500’s best performer this year, rising 189% on the rise of AI and ChatGPT.
NiveaThe 2023 star run appears to have lit up this month, with the semiconductor giant shedding nearly $180 billion in market value as its stock price feels the full force of the “September effect.”
In the year Shares have fallen 10% since Aug. 31, wiping $176 billion off the chipmaker’s total market capitalization, according to data from Refinitiv.
Traders’ anxiety increased. The Federal Reserve keeps interest rates high for a long time In recent weeks, it has weighed on stocks to tackle inflation.
Navya also seems to be a victim of this The result of SeptemberA term coined to refer to the fact that stocks tend to struggle in the ninth month of the year.
of S&P 500 It fell an average of 0.7% in September, according to Bank of America — and bucked that trend this year, with the benchmark index down 2.5% over the past 21 days.
Despite September’s struggles, Nvidia is still one of the best-performing stocks of 2023, with shares up as much as 189% year-to-date.
Analysts say the megacap technology giant has particularly benefited from the explosion of interest in AI, as it accounts for 95% of the graphics processing units (GPUs), which bots like ChatGPT run.
Nvidia became a trillion dollar company for the first timeThe best 2023 was marked by back-to-back quarterly earnings reports posted in May and August respectively.
Read the original article on Business Insider
