Nvidia's Correlation To S&P 500 Drops: Expert Says 'There Is A Lot More Going On With Sort Of The Rest Of The Market'
Portfolio Pulse from Benzinga Neuro
Nvidia's correlation to the S&P 500 index has significantly dropped from 0.95 to 0.3, indicating a divergence from the broader market. This observation was made by Liz Ann Sonders, chief investment strategist at Charles Schwab, during a CNBC segment. Nvidia's CEO, Jensen Huang, emphasized the company's role in AI infrastructure at Computex 2024, and Goldman Sachs reiterated a Buy rating with a $1,200 price target.
June 04, 2024 | 9:50 am
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Nvidia's correlation to the S&P 500 index has dropped significantly, indicating a divergence from the broader market. Despite this, Nvidia remains a benchmark in the computing industry, with Goldman Sachs reiterating a Buy rating and a $1,200 price target.
The significant drop in correlation suggests Nvidia is moving independently of the broader market, which could attract investors looking for diversification. Additionally, the positive analyst rating and high price target from Goldman Sachs are likely to boost investor confidence and drive short-term price increases.
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