Why Nvidia Stock Is Not Like Cisco Before the Dot-Com Bubble Burst
Given the headlines about Nvidia (NASDAQ: NVDA) stock's minor pullback, one would think the sky was falling. Shares of the artificial intelligence (AI) chip leader dropped 6.7% on Monday to close at $118.11. This was the third consecutive trading day that shares declined, bringing the total pullback to 12.9% since the stock closed at an all-time high of $135.58 last Tuesday. (The market was closed on Wednesday for the Juneteenth holiday.)
Nvidia stock has merely given up its gains from less than the last two weeks. Shares on Monday closed at their highest level since Tuesday, June 14. Moreover, despite the pullback, the stock is still up 139% so far this year, 180% over the one-year period, and 519% over the last three years.
Stocks never go straight up forever. There will always be pullbacks of varying magnitudes. Given Nvidia stock's rapid run-up, it's no surprise some investors are taking some profits off the table.
Source Fool.com
