Nvidia Adds Record $329B in Value as Volatility Soars

Nvidia Corp. has experienced significant volatility in its stock value, adding a record $329 billion in market capitalization, surpassing previous records. This surge follows a 13% rally after a 7% drop that erased over $193 billion from the company's value, which now stands at approximately $2.9 trillion. The fluctuations in Nvidia's stock are part of a broader trend in the technology sector, where investors are shifting from high-growth tech stocks to companies expected to benefit from potential Federal Reserve rate cuts. Nvidia's shares had previously surged 150% in the first half of the year, driven by optimism surrounding artificial intelligence (AI). However, concerns arose after Alphabet Inc.'s AI spending raised doubts about immediate profitability, leading to a sell-off. The situation improved following a positive forecast from Advanced Micro Devices (AMD), which reignited interest in tech stocks. Fed Chair Jerome Powell's comments about possible interest rate cuts also contributed to the renewed enthusiasm for Nvidia. Analysts note that the volatility reflects investor uncertainty about the returns on substantial investments in AI. Despite these concerns, Nvidia continues to perform well, with market sentiment influenced by developments from other tech giants like Microsoft and Meta Platforms, which are also heavily investing in AI. Investors remain cautious yet hopeful, balancing fears of diminishing returns against the potential for significant gains in the tech sector.