Nvidia stock slips to close in correction territory, joining AMD

Dow Jones2021-12-07

Nvidia Corp. shares just closed into a correction Monday following a big decline last week, joining Advanced Micro Devices Inc.

Nvidia $(NVDA)$ shares fell 2.1% to close Monday at $300.37, or 10% below their all-time closing high of $333.76 set on Nov. 29. Shares had fallen as low as $280.38 intraday, but a rally back was not enough to save them from the 10% decline mark that defines a correction.

The stock, however, is still up 122% over the past 12 months, and a $750.93 billion market cap still ranks it as the most valuable U.S. chip maker.

On Friday, Nvidia shares threatened to move into a correction but were saved by a late-session rally that left them down 8% from recent highs. Late Thursday, the Federal Trade Commission sued to block Nvidia's $40 billion acquisition of Arm from SoftBank Group Corp. that has met with several headwinds since it was first announced back in late 2020.

AMD $(AMD)$ shares, which fell into a correction on Friday, declined 3.4% to close at $139.06 on Monday. Shares are now 13.7% below their closing high of $161.09 set on Nov. 29.

While in much better shape than Nvidia's possible acquisition, AMD has yet to close on its $35 billion acquisition of Xilinx Inc. $(XLNX)$, which it still expects by the end of the year AMD and Xilinx shareholders both approved the deal back in April

Meanwhile, Intel Corp. $(INTC)$ shares bounced back Monday, closing up 3.5% at $50.99, but were still mired in bear territory, nearly 26% off their 52-week closing high of $68.26 set on April 9.

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