Nvidia stock was falling again Friday to end a rough November for the AI chip maker. The shares are on track for their worst month since March, down around 12%, but history says December could bring some relief.
Shares in Nvidia were down 1.8% at $177 on Friday -- a shortened half-day for the market.
The stock has struggled in recent weeks amid fears of a bubble in artificial intelligence (AI) names, of which Nvidia is among the most prominent. Rising competition from the likes of Alphabet, and shifting expectations for the Federal Reserve's next move on interest rates, haven't helped, either.
Nvidia stock's lackluster November has lagged that of the wider market, with the S&P 500 down just 0.1% for the month and the tech-heavy Nasdaq Composite slipping 1.9%.
And while stocks have staged a bit of a rebound this week -- it looks to be the Nasdaq's best Thanksgiving week since 2008 -- Nvidia has lagged behind.
However, history suggests the stock could do better through December.
Since its debut in 1999, Nvidia shares have advanced 58% of the time in the period between Black Friday and the end of the year, with an average gain of 2.8%. It's not the kind of eye-popping move that made Nvidia the world's first public company to reach a market capitalization of more than $5 trillion -- but any gains would still be welcome by investors after a negative November.
Comments