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Just one week ago, Nvidia became the world’s most valuable company.

The chipmaker – whose shares had risen nine-fold since the end of 2022 – overtook Microsoft as its stock market valuation reached $3.34trn (£2.63bn).

Since then, the shares have fallen by 13%, declining in each of the last three trading sessions.

That has been enough to clip more than $500bn (£394bn) from Nvidia’s stock market valuation reached when, last Thursday, the shares hit an all-time intra-day high of $140.76 (£110.94) each (taking into account the 10-for-one share split completed earlier this month).

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To put that into context, Exxon Mobil – the 14th biggest company in the S&P 500 index and itself one of only a dozen companies ever to achieve the status of the world’s most valuable company – has a stock market valuation of $511bn.

So what is going on?

There are a number of factors at play.

The first is profit-taking. Nvidia shares, prior to last Thursday, had enjoyed a fantastic run and had attracted a lot of hot money from so-called “momentum buyers” who see a stock moving higher and jump on board to profit from the ride.

It was natural for such buyers to lock in profits by selling.

Added to that is that speculative money has moved on. A report published over the weekend in the Wall Street Journal that Meta Platforms, the parent of Facebook, has held talks with Apple about integrating Meta’s generative AI model into the recently unveiled Apple Intelligence system sent shares in both higher as profits from Nvidia’s recent strong run were recycled.

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Last week: Nvidia overtakes Microsoft

That money has not left the market – it has simply been redeployed from Nvidia to other stocks, not least Meta and Apple, but also elsewhere.

That can be shown by the fact that the sell-off in Nvidia, while also dragging down peers such as Broadcom, Taiwan Semiconductor, and Super Micro Computer (a server maker which is a heavy buyer of Nvidia’s chips), did not lead to a wider sell-off.

The Dow Jones, admittedly not as good a barometer of the US stock market as the S&P 500, hit its highest level for a month on Monday even as the S&P 500 and Nasdaq, both of which have a heavier weighting in Nvidia, were falling.

Also contributing to the sell-off was the revelation – via a filing to the main US financial regulator, the Securities & Exchange Commission – that Jensen Huang, Nvidia’s founder and chief executive, has taken advantage of the recent rise in the share price to reduce his holding.

Mr Huang, who founded Nvidia in 1993, sold just under $95m (£74.9m) worth of shares between Thursday 13 June and Friday 21 June. Nor is Mr Huang – who still owns more than 866 million shares in Nvidia worth $102.3bn (£80.3bn) at Monday evening’s closing price – the only director to have been selling recently.

Nvidia CEO Jensen Huang present NVIDIA Blackwell platform at an event ahead of the COMPUTEX forum, in Taipei, Taiwan June 2, 2024. REUTERS/Ann Wang
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Nvidia CEO Jensen Huang is among directors to have recently sold shares

Mark Stevens, a veteran venture capitalist who has been on the Nvidia board since 2008, has offloaded $28m (£22m) worth of shares this month while Tench Coxe, another VC who was one of Mr Huang’s earliest backers and who has been on the board since the start, has sold $119.5m (£94.1m) worth.

Selling by directors is not always a reliable guide to a company’s prospects. Sometimes it reflects personal factors, such as a divorce or estate planning, rather than indicating what a director thinks of a company’s prospects. Rightly or wrongly, though, it is usually taken as a negative signal.

Perhaps the most significant factor in the sell-off, though, is that some investors have been looking at Nvidia through traditional investment yardsticks.

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The main one of these is the price/earnings (P/E) ratio. The higher the P/E ratio is, the more expensively a stock is valued.

Last week, after its latest gains, shares of Nvidia were changing hands at 45 times expected earnings.

To put that in context, the forward P/E of the S&P 500 is 22 times and the Nasdaq only slightly more. Put another way, investors were ascribing more than twice the value to Nvidia’s future earnings as they were to those of its peers.

Moreover, as the influential investment magazine Barron’s pointed out at the weekend, Nvidia was being valued at some 20 times its expected sales for the year to the end of January 2026 – a racy valuation, to say the least.

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Stocks with those kinds of valuation have to justify it with spectacular earnings growth.

Yet, as Barron’s columnist Eric Savitz pointed out, Nvidia’s quarter-on-quarter earnings growth has, over the last four quarters, slowed from 88% to 34% to 22% to 18%. Now, quarter-on-quarter earnings growth of 18% is still pretty spectacular. But it does not quite justify a price/earnings multiple that has gone from 25 to 45 over the last year.

Pointing out that from 1976 to 2020, stocks trading at P/E rations of over 15 tended to underperform, Mr Savitz added: “I know what you’re thinking. It’s different this time. This is AI! And sure, maybe AI really is the most important thing to happen in technology since cloud computing, or the internet, or mobile phones, or even the personal computer. But the numbers worry me.

“Nvidia’s market value is now nearly five times the industry estimate for next year’s global chip sales-yes, the total from every company worldwide. Microsoft has seven times the number of employees Nvidia does, and twice the sales. Apple has five times the staff, and triple the sales volume. Nonetheless, this past week, Nvidia’s market cap vaulted past them both.”

Mr Savitz was not the only investment columnist suggesting that, perhaps, Nvidia’s shares might be over-valued.

Some of Monday’s sell-off was also fuelled by the highly influential ‘Heard on the Street’ column in the Wall Street Journal which, at the weekend, invited readers to cast their minds back to the dot-com bubble at the beginning of the century and, in particular, to the gyrations seen at that time in shares of Cisco Systems.

Cisco, the Journal reminded its readers, was favoured along with stocks such as IBM, Lucent and Intel – companies whose hardware were at the forefront of connecting households and businesses to the internet. By the end of 1999, it had become the world’s most valuable company.

The comparison with Cisco has undoubtedly dented sentiment towards Nvidia in some quarters.

Pointing out that today Cisco is now valued at 40% less than it was back then, the Journal highlighted that, at its peak in March 2000, Cisco shares were valued at 131 times forward earnings despite a less impressive financial performance than that recently shown by Nvidia.

Read more:
How Nvidia climbed to the top of the market

Stressing that Nvidia was not is frothily valued as Cisco had been, the column added: “That doesn’t necessarily make Nvidia’s shares safe at their current level, though.

“The stock has seen a big influx of individual investors since the company’s latest financial results last month. Daily retail inflow has averaged nearly $141m since the earnings compared with a daily average of about $39m during the month prior, according to Vanda Research.

“Sell-side analysts are also getting rather exuberant. Several have pushed up their price targets since the stock’s 10 June split. And at least four of those targets are now at $160 and higher, which would put Nvidia’s market capitalization near $4trn at its current share count.

“Nvidia may be the top gun of AI, but investors should be careful not to write checks the stock can’t cash.”

Quite so.

AI is still a nascent technology and it is impossible to know, from here, who may be the greatest winners from it over time.

Just as investors back in 1999, trying to predict who would be the world’s biggest winners from widespread adoption of the internet, could not have known.

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Virginia Giuffre, who accused Prince Andrew of sexual assault, has died, her family says

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Virginia Giuffre, who accused Prince Andrew of sexual assault, has died, her family says

Virginia Giuffre, who accused Prince Andrew of sexual assault, has died aged 41.

In a statement to Sky’s US partner network NBC News on Friday, her family said she took her own life in the Perth suburb of Neergabby, Australia, where she had been living for several years.

“It is with utterly broken hearts that we announce that Virginia passed away last night at her farm in Western Australia,” her family said.

“She lost her life to suicide, after being a lifelong victim of sexual abuse and sex trafficking.

“Virginia was a fierce warrior in the fight against sexual abuse and sex trafficking. She was the light that lifted so many survivors.

“In the end, the toll of abuse is so heavy that it became unbearable for Virginia to handle its weight.”

FILE - Virginia Giuffre, center, holds a news conference outside a Manhattan court in New York, Aug. 27, 2019. (AP Photo/Bebeto Matthews, File)
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Pic: AP

Police said emergency services received reports of an unresponsive woman at a property in Neergabby on Friday night.

“Police and St John Western Australia attended and provided emergency first aid. Sadly, the 41-year-old woman was declared deceased at the scene,” a police spokeswoman said.

“The death is being investigated by Major Crime detectives; early indication is the death is not suspicious.”

Sexual assault claims

Prince Andrew attends the Royal Family's Christmas Day service at St. Mary Magdalene's church. File pic: Reuters
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Prince Andrew has denied all claims of wrongdoing. File pic: Reuters

Ms Giuffre sued the Duke of York for sexual abuse in August 2021, saying Andrew had sex with her when she was 17 and had been trafficked by his friend, the billionaire paedophile Jeffrey Epstein.

The duke has repeatedly denied the claims, and he has not been charged with any criminal offences.

In March 2022, it was announced Ms Giuffre and Andrew had reached an out-of-court settlement – believed to include a “substantial donation to Ms Giuffre’s charity in support of victims’ rights”.

She stuck by her version of events until the end

Of the many dozens of victims of Jeffrey Epstein, it was Virginia Giuffre who became the most high-profile.

She was among the loudest and most compelling voices, urging criminal charges to be brought against Epstein, waving her right to anonymity in 2015.

She told how he and Ghislaine Maxwell groomed her and “passed around like a platter of fruit” to be used by rich and powerful men.

But her name and face became known around the world after she accused Prince Andrew of sexually abusing her when she was 17 years old.

The picture of her together with the prince and Maxwell at the top of a staircase, his hand around her waist, is the defining image of the whole scandal.

Prince Andrew said he had no memory of the occasion. But Giuffre stuck by her version of events until the end.

‘An incredible champion’

Sigrid McCawley, Ms Giuffre’s attorney, said in a statement that she “was much more than a client to me; she was a dear friend and an incredible champion for other victims”.

“Her courage pushed me to fight harder, and her strength was awe-inspiring,” she said. “The world has lost an amazing human being today.”

“Rest in peace, my sweet angel,” she added.

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Dini von Mueffling, Ms Giuffre’s representative, also said that “Virginia was one of the most extraordinary human beings I have ever had the honour to know”.

“Deeply loving, wise, and funny, she was a beacon to other survivors and victims,” she added. “She adored her children and many animals.

“She was always more concerned with me than with herself. I will miss her beyond words.

“It was the privilege of a lifetime to represent her.”

Ms Giuffre said at the end of March she had four days to live after a car accident, posting on social media that “I’ve gone into kidney renal failure”. She was discharged from hospital eight days later.

Raised mainly in Florida, she said she was abused by a family friend early in life, which led to her living on the streets at times as a teenager.

She said that in 2000, she met Ghislaine Maxwell, a British socialite who was convicted in 2021 on federal sex trafficking and conspiracy charges and was sentenced to 20 years in prison.

Undated handout photo issued by US Department of Justice of Ghislaine Maxwell with Jeffrey Epstein, which has been shown to the court during the sex trafficking trial of Maxwell in the Southern District of New York. The British socialite is accused of preying on vulnerable young girls and luring them to massage rooms to be molested by Epstein between 1994 and 2004. Issue date: Wednesday December 8, 2021.
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Ghislaine Maxwell and Jeffrey Epstein. Pic: US Department of Justice

Ms Giuffre said Maxwell then introduced her to Epstein and hired her as his masseuse, and said she was sex trafficked and sexually abused by him and associates around the world.

‘A survivor’

After meeting her husband in 2002, while taking massage training in Thailand at what she said was Epstein’s behest, she moved to Australia and had a family.

She founded the sex trafficking victims’ advocacy charity SOAR in 2015, and is quoted on its website as saying: “I do this for victims everywhere.

“I am no longer the young and vulnerable girl who could be bullied. I am now a survivor, and nobody can ever take that away from me.”

:: Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK.

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Trump met with Zelenskyy ahead of Pope’s funeral

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Trump met with Zelenskyy ahead of Pope's funeral

Donald Trump has met Volodymyr Zelenskyy ahead of the Pope’s funeral, Vatican sources have told Sky News.

The US and Ukrainian presidents had a “very productive discussion”, according to a White House Official, and have also agreed to hold further talks after the service.

They are among world leaders, including Sir Keir Starmer and Emmanuel Macron, who are attending the funeral of Pope Francis.

Follow live updates: Zelenskyy among world leaders joining thousands of mourners

There was applause from some of those gathered in St Peter’s Square when the Ukrainian leader walked out.

The former British ambassador to Russia Sir Tony Brenton said the event presents diplomatic opportunities, including the “biggest possible meeting” between Mr Trump and Mr Zelenskyy.

U.S President Donald Trump attends the funeral Mass of Pope Francis, at the Vatican, April 26, 2025. REUTERS/Kai Pfaffenbach
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Trump and Zelenskyy meet for first time since Oval Office row. Pic: Reuters

He told Sky News it could mark “an important step” in starting the peace process between Russia and Ukraine, and is their first face-to-face meeting after a very public row between the presidents at the White House in February.

More on Ukraine

The bilateral meeting comes after Mr Trump’s peace negotiator Steve Witkoff held talks with Vladimir Putin at the Kremlin.

They discussed “the possibility of resuming direct negotiations between Russia and Ukraine”, Kremlin aide Yuri Ushakov said.

Russia and Ukraine have not held direct talks since the early weeks of the war, which began in February 2022.

Mr Trump has claimed a deal to end the war is “very close” and has urged Mr Zelenskyy to “get it done” in a post on his Truth Social platform.

He has previously warned both sides his administration would walk away from its efforts to achieve a peace if the two sides do not agree a deal soon.

Meanwhile, the Polish Armed Forces said a Russian military helicopter violated its airspace over the Baltic Sea on Friday evening, in a post on X.

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Donald Trump says Russia and Ukraine are ‘very close to a deal’ – and says ‘two sides should now meet’

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Donald Trump says Russia and Ukraine are 'very close to a deal' - and says 'two sides should now meet'

Donald Trump has said Russia and Ukraine are “very close to a deal” with “most of the major points agreed” – as he called for the two sides to meet.

Shortly after arriving in Rome for Pope Francis’s funeral, the US president said high-level officials should now meet to “finish [the deal] off”.

“A good day in talks and meetings with Russia and Ukraine,” Mr Trump wrote on his Truth Social platform.

“They are very close to a deal, and the two sides should now meet, at very high levels, to ‘finish it off’.

“Most of the major points are agreed to. Stop the bloodshed, NOW. We will be wherever is necessary to help facilitate the END to this cruel and senseless war!”

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Ukraine-Russia peace talks explained

Throughout the week, the US president has criticised both Ukraine and Russia for failing to agree to a peace deal.

On Wednesday, he accused Mr Zelenskyy of harming talks on Truth Social, saying “the man with ‘no cards to play’ should now, finally, GET IT DONE”.

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A day later, after nine people were killed in Kyiv after a Russian missile and drone strike, Mr Trump said: “Vladimir, STOP! 5000 soldiers a week are dying. Let’s get the Peace Deal DONE!”

The president and other officials have also threatened to withdraw from negotiations if no progress is made toward a deal.

It comes after Mr Trump’s envoy Steve Witkoff met Vladimir Putin in Moscow to discuss a US-brokered peace plan for Ukraine.

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Putin-Witkoff meeting

The talks allowed Russia and the United States to “further bring their positions closer together” on “a number of international issues”, a Kremlin aide said.

Speaking earlier on the flight to Italy, Mr Trump said he hadn’t been fully briefed on Mr Witkoff and Mr Putin’s meeting – but added it was a “pretty good meeting”.

Read more:
US and Russia talks moving in ‘right direction’, top diplomat says
A ‘barbaric’ 24 hours in a ‘horrendous’ war

Russia and Ukraine have not held direct talks since the early weeks of the war, which began in February 2022.

Ukraine has repeatedly said it would not accept a deal conceding land or handing over sovereignty to Russia.

However, Mr Trump said in an interview with TIME magazine that “Crimea will stay with Russia,” describing the region as a place where Moscow has “had their submarines” and “the people speak largely Russian”.

“Zelenskyy understands that, and everybody understands that it’s been with them for a long time,” he added. “It’s been with them long before Trump came along.”

When asked on Friday about Mr Trump’s comments, Mr Zelenskyy did not want to comment but repeated that recognising occupied Ukrainian territory as Russian is a red line.

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