5 Reasons Nvidia Stock Might Drop Over 50%

By Travis Hoium – Jun 19, 2024 at 11:37AM

NASDAQ: NVDA

Nvidia

Market Cap

$3,109B

Today's Change

(0.25%) $0.31

Current Price

$126.40

Price as of June 26, 2024, 4:00 p.m. ET

History is littered with examples of high-flying stocks falling 50% or more, including Nvidia.

Shares of Nvidia (NVDA 0.25%) have gone nowhere but up over the past two years, and it seems the company can do nothing wrong. But there are historical examples of industry leaders like Nvidia falling 50% or more when the market doesn't live up to the hype, competitors come in, or the market takes a turn for the worst.

In this video, Travis Hoium shows why Nvidia shareholders should expect more volatility ahead.

*Stock prices used were end-of-day prices of June 18, 2024. The video was published on June 19, 2024.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet, Matterport, and Unity Software. The Motley Fool has positions in and recommends Alphabet, Amazon, Cisco Systems, Matterport, Meta Platforms, Microsoft, Nvidia, and Unity Software. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.