More than three-quarters of FTSE 350 firms have outperformed Nvidia this year
The shares of more than three quarters of FTSE 350 firms have outperformed Nvidia so far this year after the world’s biggest semiconductor firm was blighted by concerns over bloated AI valuations and its billionaire founder was caught in a relationship scandal involving an alleged spy. Some 68 constituents of the FTSE 100 and 202 [...]
More than three-quarters of FTSE 350 firms have outperformed Nvidia this year, according to a City AM analysis. The world's biggest semiconductor firm has faced concerns over inflated AI valuations and its billionaire founder, Jensen Huang, involved in a relationship scandal. Nvidia's shares have dropped by over seven per cent since the start of the year, following a sharp sell-off on Monday due to Huang's admission of an extramarital affair with a customer and alleged Chinese spy.
This triggered an internal investigation at the company. The FTSE 100 is up 9.3 per cent year-to-date on an equal-weight basis, while Nvidia's shares have lost more than seven per cent. Huang expressed regret for his actions and accepted responsibility for the damage caused. The stock market had already been concerned about the potential for the AI investing boom to run out of steam, with Nvidia's stock price falling from a peak of around $240 to $180.
The FTSE's performance is surprising many, as there has been a worldwide shift towards stodgier sectors like healthcare and consumer staples, away from tech. Sceptics wonder if the scandal could further undermine Nvidia's stock, which they view as too valuable to lose.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
