Nvidia's stock enters correction territory less than a week after hitting a high

By Emily Bary

Three-day slide in Nvidia shares wipes out more than $400 billion in market cap

The swift recent downturn in Nvidia Corp. shares has taken them into correction territory.

Nvidia's stock (NVDA) closed at an all-time high less than a week ago, which was enough to confer the company status as the largest in the U.S. by market capitalization - for one day. Since then, the stock has logged three sessions in a row of declines, and it's currently down almost 13% from its peak close.

Read: 11 favored semiconductor stocks expected to outperform Nvidia over the next year

A correction is typically defined as a drop of between 10% and 20% from a bull-market high.

Nvidia shares fell 6.7% in Monday trading, to $118.11. The three-day slide shaved more than $400 billion off the company's market capitalization over that span. Nvidia finished the latest session with a $2.90 trillion valuation.

The shares dropped 12.9% over the past three sessions to record their worst three-day percentage decline since they fell 14.4% in the period that ended Dec. 27, 2022, according to Dow Jones Market Data.

The stock was the third-worst performer in the S&P 500 SPX on another tough day for chip stocks. Shares of Super Micro Computer Inc. (SMCI), an Nvidia partner, fell 8.7% and were the second-worst performer in the index, staging their worst performance since the start of May. Other notable losers included shares of Qualcomm Inc. (QCOM), down 5.5%, and Broadcom Inc. (AVGO), down 4%.

The PHLX Semiconductor Index SOX was off about 3%.

See also: Nvidia is 'both king and kingmaker,' and these chip stocks could pop in its wake

Read: Why Broadcom's stock just got its most upbeat endorsement yet

-Emily Bary

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06-24-24 1618ET

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