There has been an ongoing rotation in the stock market, and one of the losers has been previously high-flying Nvidia (NASDAQ: NVDA). Shares of the leading artificial intelligence (AI) chip and software maker continued to drop on Tuesday.
Today, shares fell more than 8% before paring some of that drop. At the intraday low of about $102.5 per share, the stock was down more than 25% from its recent June intraday high of more than $140. As of 2:15 p.m. ET, shares were still lower on the day by 5.6%.
But a sector rotation might not be the only factor driving the drop. It’s true that investors are moving out of the large tech companies and into previously lagging small-cap stocks as they prepare for the first interest rate cuts since 2020.
Nvidia CEO Jensen Huang has also been selling the stock, and sometimes that spooks investors. Especially since the stock has more than doubled year to…
