AI Boom Wanes In June: Nvidia Falls Under $1T As Benzinga Reviews May's Champions

Zinger Key Points
  • Tech stocks saw a rally in May, with Nvidia leading the charge and reaching a $1 trillion market cap.
  • Top May performers: ImmunoGen, Verastem Oncology, C3ai and Super Micro Computer saw gains of more than 100%.

May’s bull run in tech and AI stocks made Wall Street’s pulses race, led by Nvidia Corporation NVDA as it toppled a $1 trillion market cap for the first time in the company's history.

But, as the month of June begins, the rally in AI-exposed stocks may be coming to a halt following an earnings beat from AI software firm Inc AI, triggering a selloff that saw the company’s shares plunge by more than 13% on Thursday.

Nvidia, the chipmaker at the heart of the AI surge, also dipped a bit, causing its market cap to dip below the $1 trillion mark, though shares are recovering now.

Concerns over the lofty valuations are mounting, with Cathie Wood warning that shares are "priced ahead of the curve.”

Still, due to its leading position in the AI sector, Nvidia is expected to be the prime beneficiary of the anticipated wave of demand for generative AI.

Read Also: Booming ADP Employment, Stable Unemployment Claims Set Stage For Friday’s Key May Jobs Report

Among the top-performing stocks in May, as per data from Benzinga Pro, were ImmunoGen Inc IMGN, Verastem Oncology VSTM, C3ai and Super Micro Computer Inc SMCI, posting gains of 147.55%, 131.82%, 114.76% and 113.06%, respectively.

On the flip side, Icahn Enterprises LP Common Stock IEP saw its stock value shrink by 55.24%.

Other gainers were:

  • Upstart Holdings Inc UPST +109.86%
  • IONQ Inc IONQ +96.54%
  • Palantir Technologies Inc PLTR +87.01%
  • Equitrans Midstream Corp ETRN +69.25%

And losers:

  • Advance Auto Parts, Inc. AAP -41.91%
  • First Horizon Corp FHN -41.15%
  • Foot Locker Inc FL -38.94%
  • Paramount Global Class B PARA -35.11%

The performance of AI-related stocks in the coming weeks will be crucial to understanding the market’s appetite for AI investment.

Read Next: AI Vs. Wall Street: Week 3 Results Of The Benzinga ChatGPT Investment Challenge

Photo: Shutterstock

Market News and Data brought to you by Benzinga APIs
Posted In: BiotechLarge CapMid CapNewsPenny StocksHealth CareMovers & ShakersMarketsTechTrading IdeasGeneralAIartificial intelligence
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!