On June 25, Nvidia's (NASDAQ: NVDA) stock price rose approximately 7%, ending a three-day decline that saw its market value drop by over $430 billion. Nvidia closed at $126.09 per share, down nearly 13% from its June 18 closing price of $135.58.

Tom Hayes, Chairman of Great Hill Capital in New York, commented, "Today's rebound follows a normal technical bounce after a 15% decline over the past three days. Markets do not move in a straight line every day. The company saw insiders selling $750 million worth of stocks amidst retail investor participation in the split."

Nvidia, renowned for its remarkable growth and as a major processor supplier driving applications in artificial intelligence, has symbolized the tech boom in the U.S. stock market this year. According to S&P Dow Jones Indices data, Nvidia's stock has surged 154% this year, contributing nearly 30% to the S&P 500 index's year-to-date return, which has risen 14.6% as of June 24.

Recent selling activity has alleviated concerns about Nvidia's high valuation, reducing its market capitalization from around $3.3 trillion earlier this month to approximately $3.1 trillion. Tom Plumb, CEO and portfolio manager at Plumb Funds, remarked, "For a company with soaring stock prices and immense attention, this is a normal adjustment. I don't think it has reached a historical peak until it ensures that its business can actually sustain the slowdown in momentum."

Bullish sentiment towards Nvidia remains evident in the options market, though recent declines in its stock have made traders more cautious. According to Trade Alert, over the past three trading days, the number of bullish options (typically used to bet on price increases) exceeded bearish options by 1.4 times. In the previous ten trading days, this ratio was 1.6 times.

Simultaneously, short sellers betting on Nvidia's stock decline have profited $4.97 billion over the past three trading days, according to data from Ortex Technologies. Mario Iachini, Senior Vice President at Vanda Research (NASDAQ: VNDA), which monitors individual investor behavior, suggested that retail investors may have bought into the stock during the recent downturn.