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The chip maker is giving up the top spot as the world’s most valuable company
The semiconductor giant’s share price fell successively, falling 6.7%, after rising earlier in the week and pushing the company’s value to $3.1 trillion, making the company relinquish its lead to the most valuable companies in the world. Traders said there were no fundamental reasons behind the two-day sell-off, but it underscores, if nothing else, how big the company is after its value nearly tripled over the past year.
“Nvidia” could, of course, regain first place soon after losing more than $220 billion of its market value in two days.
“Nothing big happened at Nvidia, which came in at No. 1 earlier this week,” said Russ Mold, chief investment officer at AJ Bell. “It’s just the usual fluctuations in the stock market, which, with such large companies, can erase or add hundreds of millions or even billions of dollars to their market value.”
This decline also comes amid a broader decline in the stock market, as options contracts expire in what is called a “triple maturity” session. As these contracts disappear, investors will adjust their positions, adding a wave of liquidity capable of moving stock prices.
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