Nvidia’s stock climbs higher today after a recent surge that placed it at the top of the market.

The AI chip manufacturer saw its stock price skyrocket from $674 to nearly $800. On Monday, the price was sitting at $798 and rising, up 1.27% from the previous day.

The recent surge pushed Nvidia past Amazon and Alphabet, placing Nvidia firmly in the number three spot on the S&P 500. For 2023, Nvidia’s stock shot up 250%. Such a strong performance last year made traders perk up when it looked like a repeat was happening for early 2024.

The stock achieved a $2 trillion market capitalization, and then added to that with the largest single-day gain for Wall Street ever. It is no wonder why so many analysts are expecting great things from this stock and why traders are jumping on it as they predict the price will continue to rise. But is there a risk of price correction for this stock?

Will There Be Pullback on Nvidia?

Some analysts seem to think so, and it makes sense after Nvidia’s incredible performance. The stock could experience a major drop off as traders let go of the stocks they just earned major gains from.

Nvidia will still be a strong stock even if the price corrects. It is Nvidia’s chip H100 that powers ChatGPT from OpenAI. Because the AI market is growing rapidly, there will be a strong demand for Nvidia’s products for the foreseeable future.

The company is positioned for a very good 2024 and has recently become very visible to the wider trading market thanks to the fresh gains and record-breaking growth. That momentum is not likely to continue for very long, as the market cannot support sustained growth of that magnitude, but if the stock can keep most of its gains, it will become a mainstay of the top spots on the S&P 500 index for a while.