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More than three-quarters of FTSE 350 firms have outperformed Nvidia this year
More than three-quarters of FTSE 350 companies have outperformed Nvidia so far this year, as the chipmaker’s shares have fallen amid concerns about high AI valuations and a scandal involving chief executive Jensen Huang. The comparison highlights a shift in market performance away from technology shares, while questions grow about the durability and financing of the AI investment boom.
At Monday’s close, 68 FTSE 100 firms and 202 FTSE 250 members had beaten Nvidia’s year-to-date share performance, according to the article’s analysis. The FTSE 100 was up 9.3 per cent on an equal-weight basis, while Nvidia had lost more than 7 per cent; its shares fell sharply after reports of Huang’s relationship with a customer who was alleged to be a Chinese spy, prompting an internal investigation. Nvidia’s market value briefly dropped by as much as $200bn (£150bn), following an earlier decline from about $240 in early October to $180 a month later.
In short
- More than three-quarters of FTSE 350 firms beat Nvidia this year.
- Nvidia shares have fallen over 7 per cent year to date.
- Investors are weighing AI concerns and a shift towards defensive sectors.
Explained simply
Nvidia makes graphics chips used in gaming and data centres, and has become a central supplier to companies building artificial intelligence systems. Its shares rose sharply as investors bet that demand for AI computing would keep growing. The FTSE 350 brings together the largest companies listed in the UK, through the FTSE 100 and FTSE 250 indices.
Share prices can move as investors reassess a company’s prospects, the price they are willing to pay for future growth, or concerns about its leadership and business relationships. The comparison with Nvidia gives a snapshot of how its share performance has measured up against a broad group of UK-listed companies this year. It also comes as investors consider how long AI spending may continue and how it will be funded.
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