(MT Newswires) -- NVIDIA, known as a major player in the technology sector and a leader in the development of artificial intelligence, saw its share price fall by 0.5%, after a session in which the company saw its market capitalisation plummet by $250 billion in the space of three hours, an unprecedented phenomenon for a single company.

Despite this volatility, analysts are approaching these concerns (the high valuations of the technology giants) with a degree of serenity. They point out that valuations are not excessively high if we take into account the real growth in company profits.

Market experts such as Jason Drahos and Kelsey Barrow maintain that fundamentals remain solid despite the ups and downs. Drahos points out that the valuations of technology companies are reasonable, not least because of rising profits and growth prospects, especially in innovative areas such as AI, which has seen spending increase faster than expected.

NVIDIA is therefore seen as a key indicator for the technology sector, and future events, such as its AI conferences, are likely to influence market confidence. While caution is warranted in the face of current volatility, optimism is being fuelled by the strength of companies and interest in growth sectors that continue to drive innovation and the global economy.

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