On Monday, Nvidia experienced a significant downturn, with its stock closing at £118.11, marking a 6% decline. This drop was largely due to investors shifting, which has been the most prominent AI investment of the year. The overall market reflected this change in sentiment. The S&P 500 fell by 0.3%, and the Nasdaq slid by 1.1%. In contrast, the Dow Jones saw a rise of 0.7%.

The cryptocurrency market was not immune to these shifts. Bitcoin, in particular, saw a decline, trading at £60,000, significantly below its record high of £73,000. This drop had a cascading effect on stocks in relation. Some included Robinhood Markets and Coinbase Global. Knowingly,  these went through a negative impact of Bitcoin’s downturn.

Jefferies Raises Nvidia Price Target to £150, Maintains Buy Rating

Industry experts have suggested that investors should closely monitor for signs of a sustained pullback. Nvidia’s dominance may not change over the next six to nine months. However, attention should be given to the profitability within the ecosystem. Analysts from Jefferies maintained a positive outlook on Nvidia, reaffirming their Buy rating and raising their price target from £135 to £150, reinforcing Nvidia’s position as a leader in the market.

Looking ahead, several key events will influence market dynamics further. Micron (MU), a beneficiary of AI, will report its quarterly results on Wednesday, coinciding with Nvidia’s annual shareholder meeting. Later in the week, the government will release gross domestic product data on Thursday, followed by May’s personal consumption expenditures price index on Friday. These events will clarify the economic outlook and investor sentiment.

Nvidia’s All-Time High at £135.58 Last Tuesday

Last Tuesday, Nvidia reached an all-time high closing price of £135.58, briefly dethroning Microsoft with a market capitalisation of £2.9 trillion. Despite Microsoft’s and Apple’s £3 trillion valuations, Nvidia’s rapid ascent and subsequent pullback highlight the volatile nature of the stock market, particularly in the technology sector.

Last week concluded with mixed results. The S&P 500 and Dow Jones posted gains on Friday, while the Nasdaq showed minimal movement. However, the semiconductor sector’s slump weighed heavily on the Nasdaq Composite and the S&P 500. The preceding Thursday saw Nvidia’s influence buoying the S&P 500 and Nasdaq to record highs, underlining the stock’s significant impact on market indexes.

Jefferies Reiterates Buy, Nvidia Target Raised to £150

Over the weekend, Jefferies reiterated its positive stance on Nvidia, maintaining a Buy rating and increasing the price target to £150 from £135. Despite recent fluctuations, this move underscores the continuing confidence in Nvidia’s long-term prospects.

Monday’s market activities saw little change in Treasury yields as investors awaited crucial economic data, including May’s personal consumption expenditures price index and gross domestic product data. Nvidia’s stock performance on Monday marked its second-worst day since 2022, continuing a that began after the company briefly became the world’s most valuable firm the previous Tuesday.

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