Nvidia’s stock price falls 10% overnight as analysts re-access the company

In the past year, Nvidia’s Stock has tripled in price, mostly due to Nvidia’s profits reaching record highs and their entry into the AI compute and self-driving car markets. This lower price is not a sign of Nvidia’s imminent doom, but just a valuation that may be more representative of the companies actual worth, which accounts for the companies lower growth forecasts. 

When it comes to Stocks and shares it is all about perceived value, which can change at any time for any number of reasons. Just look over at AMD and we will see similar increases in share prices, despite the fact that the company is still failing to make a profit in recent quarters. Similar things can also be said for the value of the UK’s Pound currency (GBP), which dropped by 20% following the Brexit vote despite the fact that the day-to-day operation of the UK was and still is unchanged. 

The stock market is all about expected growth or profits from a company and as this case shows can be changed overnight even without any actions from Nvidia themselves, showcasing how fragile the whole financial system can be. 

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