Nvidia Inc. has reached a major milestone by surpassing a $3 trillion market capitalization, outperforming even tech giant Apple. This achievement comes after the chip manufacturer underwent a 10:1 split, making its shares more accessible to employees and retail investors. The company’s stock, NVDA, saw a surge in trading volume, second only to GameStop’s GME, demonstrating strong investor interest.
Despite facing challenges from new restrictions imposed by the US Department of Commerce on AI processor exports, Nvidia Corp managed to beat the Russell 2000 Index by a significant $10 billion margin. Investors were initially concerned about the impact of these restrictions on the company’s performance, but the split and subsequent increase in trading volume have helped to maintain its strong position in the market.
The anticipation surrounding Nvidia’s split also sparked interest in AI-related cryptocurrencies, with tokens like Render (RNDR), Near Protocol (NEAR), and Injective (INJ) experiencing price surges. However, as is often the case with such events, the market saw a ‘sell the news’ reaction, resulting in a drop in trading volume and market capitalization for AI tokens.
The strategy of ‘buy the rumor, sell the news’ is a common approach used by investors to capitalize on anticipated market reactions to rumors, events, or news announcements. When rumors suggest positive outcomes for an asset, savvy traders may buy in early based on speculation, with the goal of selling once the news becomes public knowledge and the market reacts accordingly.
As with any investment decision, it is important for readers to independently verify information and seek professional advice before making any financial commitments based on the content presented. BeInCrypto is committed to providing accurate and transparent reporting in accordance with Trust Project guidelines, with updated Terms and Conditions, Privacy Policy, and Disclaimers to ensure clarity and reliability for readers.
Discussion about this post