Is Nvidia's Momentum Over? Here's What History Says.
Nvidia (NASDAQ: NVDA) soared to record highs earlier this year, crossed the $1,000 mark -- and finally launched a stock split in June to lower its per-share price. The reason for the fantastic performance is simple. Nvidia dominates the artificial intelligence (AI) chip market, and this has helped it generate triple-digit gains in earnings in recent times.
Revenue even reached records quarter after quarter -- and in the most recent quarter, it came in higher than a full year of revenue in 2021. This hasn't been just a short-term story: Nvidia stock advanced more than 2,000% over the past five years.
It's clear that this stock has shown plenty of momentum, but the story changed in recent weeks. Though Nvidia shares climbed in the days following its June stock split, from its June 18 high through today, the stock has dropped about 17%. At the same time, rivals are eager to take market share with their top-performing chips, and some experts have warned that the stock market is in a bubble that could be set to burst. Does this mean Nvidia's incredible momentum may be a thing of the past? Here's what history says.
Source Fool.com
