Did you hear it? The sound of PC players everywhere rejoicing at the news that NVIDIA, a company that creates Graphics Processing Units (or GPUs), had their market value tank by $500 billion. Now, $500 billion is a massive amount of money, one that hardly anyone can even quantify in their heads, but for PC players the numbers in their heads weren’t the half trillion dollars that the tech company lost, it was the money that graphics cards usually cost when building and upgrading their PCs. A tank to them undoubtedly means that there will be some discounts to graphics cards, at least for a bit, and with graphics cards being outrageously pricey for the past while this was good news for everyone.
Buy low sell high after all, though in this case it’s more buy low and be thankful you got a graphics card for very cheap. Sadly, this didn’t last all that long. As reported by CNN, NVIDIA’s stock has rebounded since the sharp fall yesterday.
On Tuesday, Nvidia closed nearly 7% higher, reversing course after three straight days of declines, which caused some investors to worry that the excitement over the crucial role the company is expected to play in the artificial intelligence revolution may be cooling.
So, it looks like NVIDIA’s stock is back on the rise. Sorry, but those GPU price reductions won’t be coming anytime soon. However, for the brief period where it was announced that NVIDIA had lost half a trillion dollars, it sure was exciting. But for now, NVIDIA is rebounding strong after a momentary lapse in a volatile market, and they’ll likely be the primary graphics cards providers for the foreseeable future.