Nvidia (NASDAQ) shares jumped nearly 7% on Tuesday, rebounding from a three-session decline that wiped out approximately $430 billion from the AI chipmaker’s market value. The stock closed at $126.09, recovering from a 13% drop since June 18.
Nvidia, up 154% this year, has been a key driver of the tech sector’s rally, accounting for nearly 30% of the S&P 500’s year-to-date return. The recent selloff has eased valuation concerns, with the company’s market cap now at $3.1 trillion.
Bullish sentiment persists, as Nvidia call options outnumbered puts by 1.4-to-1 over the last three sessions, despite increased short-selling. Retail investors have likely bought the stock on the dip, according to Vanda Research.
