Nvidia Corp. (NASDAQ:NVDA), which was witnessing a stratospheric rally up until Tuesday, has seen some normalization late last week. The stock declined in two straight sessions that came after Wednesday's Juneteenth public holiday. Early indications today suggest Nvidia could extend its losses.
In premarket trading on Monday, the stock fell 1.86% to $124.22, according to Benzinga Pro data.
Last week, on Tuesday, the stock reached an all-time closing high of $135.58 (split-adjusted) and climbed to an intraday high of $140.76 on Thursday. However, it fell by about 6.65% from its record close and a more significant 10.1% from the intraday high on the same day.
Based on the technical pattern, an analyst predicted a likely 30% plunge before the second-quarter earnings release, typically released in late August.
Most analysts see the Nvidia pullback as a blip on the radar. Fund Manager Louis Navellier said in a note to clients, "It's likely underweighted buyers will fill in and see it [pullback] as a buying opportunity."
Bryan Perry, Senior Director with Navellier Private Client Group, said in a separate note he believes a generational wealth-building opportunity is currently underway with the AI bets, at the expense of just about every other market sector.
"Big cap AI tech-centric stocks should be the primary focus of investors' capital commitments while this wave the size of the Waimea Bay pipeline breaks," he added.
Offering a testament to the multi-year opportunity before Nvidia, Qatari telecoms group Ooredoo announced over the weekend that it is leveraging Nvidia's advanced accelerated computing platform to help enable the AI revolution in the Middle East. The contract is touted as the U.S. company's first large-scale launch in the region.
Photo via Shutterstock
