NVIDIA Shares Took a Breather: What's Behind the Recent Dip?

If you follow the stock market, you've probably heard about NVIDIA (NVDA). After an amazing run where it briefly became the most valuable company in the world, its stock price recently took a noticeable dip. On Friday, June 21st, NVDA shares fell by nearly 7%. This marked the second day in a row that the stock price went down. So, what caused the drop? The article suggests it wasn't due to bad news about NVIDIA itself. Instead, after the stock price climbed incredibly high this year (up around 155% before the dip!), some investors likely decided it was a good time to sell some shares and lock in their profits. This is often called 'profit-taking.' The demand for NVIDIA's computer chips, especially those used for artificial intelligence (AI), has been massive and fueled its incredible growth. While the stock saw a pullback, the excitement around AI continues to be a major factor for the company. In short, NVIDIA's stock price went down recently, likely because investors cashed in some gains after a huge surge. It happened right after the company hit a major milestone, briefly becoming the world's most valuable.