(Image source from: Facebook.com/NVIDIA)
Nvidia, which has crossed all the record prices recently and even crossed Apple's market share is now facing a huge drench. Nvidia has recorded a loss of 279 billion dollars in market value after economic data was triggered, which is almost 9 per cent down from their actual share price.
The quarterly forecast of the company has failed to reach the expectations of the investors, which has resulted in a bear rally in its stock.
In the USA, many strategists have questioned the investors before, over their investment in the AI market. Black Rock strategist also told to the clients to look into the balance sheets and capital before investing in any AI individual companies.
Some recent research has also questioned the revenue investment of AI alone.
Todd Sohn, an ETF strategist at Strategas Securities has said that people have invested huge in the tech and semiconductor markets in the last 12 months and this is going to show the volatility in the market soon.
The US Department of Justice has also sent a Subpoena to Nvidia over the AI heavyweight’s antitrust. According to the Bloomberg report, the chip maker Nvidia makes it harder to switch to other suppliers and penalizes buyers that do not exclusively use its artificial intelligence chips.
More investors have gained huge profits in AI markets this year. This is also one of the reasons for the selling pressure.
In July Nvidia also tripled its price, while the company has losses up to 118 per cent to date.
Coming to Indian markets, US pressure is on Indian markets.
On Tuesday, the Sensex began at 82,652.69 and where the previous closing was at 82,559.84.
Today was a tough day for the investors. Analysts suggest a correction in the markets with the surge of 4.7 per cent from August 14th to Sep 3rd. The market sentiment might show some red this weekend due to the volatility and recession in the US market.
Investors and analysts suggested keeping some money in hand for the investments as you can get stocks at better valuations. They suggest that the markets are extremely positive and just wait for the time to invest, rather than worrying about something else.
Analysts also suggest that investing in Indian markets is only a demand of patience and conviction. The retail participation in Futures (F & O) might end up losing money.
Portfolio manager Pawan Bharaddia, Co-founder of Equitree Capitals says that the stocks are at a high valuation and he also thinks markets have enough opportunities for investments.