Nvidia’s recent 20% drop in stock prices is being viewed positively by market strategists. On Monday afternoon, the Nasdaq rose by 1.5%, gaining 277 points, following President Joe Biden’s decision to withdraw from the presidential race and endorse Vice President Kamala Harris. The Dow Jones Industrial Average and the S&P 500 both posted gains of 0.3% and 1.1%, respectively.
The crypto-based betting platform Polymarket currently supports Harris as the likely Democratic nominee for president, while PredictIt, based in New Zealand, predicts she will become the 47th president of the United States.
In a separate development, Nvidia’s stock saw a 4% increase after reports emerged that the company is developing a new version of its Blackwell AI chips for the Chinese market. Collaborating with a local distribution partner, Inspur, Nvidia plans to launch the chip, tentatively named “B20,” with shipments expected to begin in the second quarter of 2025.
Tesla’s stock also surged nearly 5% a day before the company is set to release its earnings report, during which CEO Elon Musk is anticipated to provide updates on the delayed robotaxi project. Musk shared on X that Tesla plans to have operational humanoid robots for internal use next year, with hopes of higher production for other companies by 2026.
On the other hand, CrowdStrike, the cybersecurity firm behind a significant global tech outage last week, is still managing the repercussions of the incident. The company reported that a large number of the approximately 8.5 million Windows devices affected are now back online. However, CrowdStrike’s stock was down over 13% on Monday, trading around $263.
Meanwhile, Verizon experienced a nearly 6% drop in its stock price after releasing its quarterly earnings, which missed revenue estimates. The telecommunications giant reported second-quarter revenue of $32.8 billion, slightly below the $33.06 billion expected by analysts, with earnings per share matching expectations at $1.15. This decline is attributed to customers keeping their old phones longer, affecting upgrade rates critical for telecom companies.