All eyes are on Nvidia's stock, so what's been going on?

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All eyes are on Nvidia's stock, so what's been going on?

2024-06-26 08:15 Last Updated At：08:21

Nvidia shares rebounded Tuesday, halting a three-day skid that had surprised many investors and wiped away more than $400 billion in market value.

Early last week, Nvidia overtook Microsoft as Wall Street’s most valuable public company. Then it fell 13% over three days, its worst such stretch since 2022. Because Nvidia has become so massive in size, the movements for its stock carry extra weight on the S&P 500 and other indexes.

Any stock that climbs as much as Nvidia has — up more than 1,000% since the autumn of 2022 — is vulnerable to some of its investors selling shares in order to lock in some profits. That earlier run makes a 13% drop over three days look like a relative trifle.

Monday, Nvidia shares rose 6.8%, bringing its market value to $3.10 trillion, behind Microsoft at $3.35 trillion and Apple at $3.21 trillion.

Those three companies and a few others are responsible for much of the S&P 500’s returns recently. Investors would prefer a market where many stocks are participating in the gains.

There’s been nearly insatiable demand for Nvidia’s chips to power artificial intelligence applications and the company has played a big role in the U.S. stock market’s recent record runs even as the economy’s growth slows under the weight of high interest rates. But the AI boom is moving at such a rapid pace that it’s raised worries about a possible bubble in the stock market and too-high expectations among investors.

Derren Nathan, head of equity research at Hargreaves Lansdown, said in a statement that while Nvidia's stock has declined in recent days, one must also look at the bigger picture.

“The shares have still gained 190% on a 12-month view, so it’s no surprise some investors are locking in some profits,” he said.

Nathan also isn't concerned about potential wider spread implications. "Although Nvidia has sneezed, the wider market hasn’t caught a cold with a mixture of less extreme movements in both directions for the rest of the Magnificent 7,” he said.

The Magnificent 7, which include Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla, are a small group of stocks that are responsible for a big chunk of the U.S. stock market's total return.

Some critics say Nvidia still looks expensive. Its stock is trading at a price that’s 73 times higher than the profit that it’s produced over the last 12 months. That makes it look much more expensive than the broad S&P 500 index, where companies are trading at just 26 times their overall earnings. That itself looks pricey to skeptics, who say the broad U.S. stock market looks expensive compared with history.

The thing Nvidia has going for it is the possibility of continued, incredible growth as it ushers in a new era that proponents say will remake the economy.

Based on its expected profit over the next 12 months, Nvidia is trading at a still expensive but more reasonable price-earnings ratio of roughly 40. And if generative AI hardware deployments are still only in year two of what could be a three-to-five year deployment cycle, as analysts at Bank of America suggest, the possible runway of growth could make it look even more compelling.

Analysts estimate that the company’s revenue for the fiscal year that ends in January 2025 will reach $119.9 billion — about double its revenue for fiscal 2024 and more than four times its receipts the year before that.

Associated Press Business Writer Stan Choe in New York contributed to this report.

Trump lists his grievances in a Wisconsin speech intended to link Harris to illegal immigration

2024-09-29 06:38 Last Updated At：06:40

PRAIRIE DU CHIEN, Wis. (AP) — Former President Donald Trump meandered Saturday through a list of grievances against Vice President Kamala Harris and other issues during an event intended to link his Democratic opponent to illegal border crossings.

A day after Harris discussed immigration at the U.S.-Mexico border, Trump spoke to a crowd in Prairie du Chien, Wisconsin, about immigration. He blamed Harris for migrants committing crimes after entering the U.S. illegally, alleging she was responsible for “erasing our border.”

“I will liberate Wisconsin from the mass migrant invasion,” he said. “We’re going to liberate the country.”

Trump hopes frustration over illegal immigration will translate to votes in Wisconsin and other crucial swing states. The Republican nominee has denounced people who cross the U.S.-Mexico border as “poisoning the blood of the country” and vowed to stage the largest deportation operation in American history if elected. And polls show Americans believe Trump would do a better job than Harris on handling immigration.

Trump shifted from topic to topic so quickly that it was hard to keep track of what he meant at times. He talked about the two assassination attempts against him and blamed the U.S. Secret Service for not being able to hold a large outdoor rally instead of an event in a smaller indoor space. But he also offered asides about climate change, Harris' father, how his beach body was better than President Joe Biden's, and a fly that was buzzing near him.

“I wonder where the fly came from,” he said. "Two years ago, I wouldn’t have had a fly up here. You’re changing rapidly. But we can’t take it any longer. We can’t take it any longer.”

Trump repeatedly brought up Harris' Friday event in Douglas, Arizona, where she announced a push to further restrict asylum claims beyond Biden's executive order announced earlier this year. Harris denounced Trump's handling of the border while president and his opposing a bipartisan border package earlier this year, saying Trump “prefers to run on a problem instead of fixing a problem.”

“I had to sit there and listen" to Harris last night Trump said, eliciting cheers. “And who puts it on? Fox News. They should not be allowed to put it on. It’s all lies. Everything she says is lies.”

The Republican nominee also intensified his personal attacks against Harris, insulting her as “mentally impaired” and a “disaster.”

Trump professed not to understand what Harris meant when she said he was responsible for taking children from their parents. Under his administration, border agents separated children from their parents at the U.S.-Mexico border in a policy that was condemned globally as inhumane and one that Trump himself ended under pressure from his own party.

Harris, at a rally in San Francisco, told supporters there were “two very different visions for our nation” and voters see it “every day on the campaign trial.”

“Donald Trump is the same old tired show,” she said. “The same tired playbook we have heard for years.”

She Trump was “a very unserious man." “However the consequences of putting him back in the White House are extremely serious.”

At Trump's event, on either side of the stage were poster-sized mug shots of men in the U.S. illegally accused of a crime, including Alejandro Jose Coronel Zarate, a case Trump cited in his speech.

Wisconsin Republicans in recent days have cited the story of Coronel Zarate's arrest in Prairie du Chien as more evidence that people in the country illegally are committing crimes across the United States, not just in southern border states. Prosecutors charged Coronel Zarate on Sept. 18 with sexual assault, child abuse, strangulation and domestic abuse. His lawyers declined to comment.

Police Chief Kyle Teynor posted statements on Facebook saying that Coronel Zarate is not a U.S. citizen and that he had two fake immigration documents, including a fake Social Security card. The chief added that Coronel Zarate’s tattoos indicate he’s affiliated with the Tren de Aragua gang, which started in Venezuelan prisons and is posing a growing threat in the U.S.

Speaking to the crowd Saturday, Teynor stressed to the crowd that Coronel Zarate is the only Venezuelan gang member his agency has encountered, but the violence his two alleged victims suffered at his hands earlier this month was very real.

Republicans including U.S. Sen. Derrick Van Orden, who is from Prairie du Chien, have criticized authorities in both Minneapolis and Madison for letting Coronel Zarate go, saying they essentially allowed him to attack the woman in Prairie du Chien. They have accused both jurisdictions of being sanctuaries for people in the country illegally.

Van Orden told the crowd Trump was the only one who could restore order.

“You’re going to see the one man who has enough strength and courage of conviction to stand up to anyone up to and including being shot in the head for us," he said.

Long reported from Washington. Associated Press Writer Will Weissert reported from San Francisco.

All eyes are on Nvidia's stock, so what's been going on?

Sport

All eyes are on Nvidia's stock, so what's been going on?

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