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Scottish Mortgage Investment Trust PLC (LSE:SMT) saw its share price rise by more than 3% following a positive performance in the US technology sector. This uptick was largely influenced by Nvidia Corp, the trust’s largest holding, which represents 6.8% of its portfolio. Nvidia’s shares closed 8% higher on the Nasdaq 100 index on Wednesday, ending a period of decline for the prominent chipmaker.
Nvidia had faced a challenging period following its second-quarter earnings report in early September. Although the company surpassed revenue expectations, concerns about the future of its AI chip sales led to a significant drop in its market valuation, with approximately $270 billion being erased from Nvidia’s value.
Despite this setback, Nvidia's shares rebounded strongly in the latest session, recovering by over 8%. This recovery positively impacted Scottish Mortgage, which benefits from its substantial stake in Nvidia and aligns with broader trends in the US technology market.
Scottish Mortgage is known for its significant holdings in major tech companies, including Amazon.com Inc (NASDAQ:AMZN) and Tesla Inc (NASDAQ:TSLA), as well as a range of unlisted firms such as Elon Musk’s SpaceX. This exposure makes the FTSE 100 investment trust particularly sensitive to fluctuations in the US technology sector.
As of the most recent update, Scottish Mortgage shares were trading at 819.19p, with the company’s market capitalization standing at £10.6 billion. The recent performance of Nvidia has contributed to the overall positive sentiment around Scottish Mortgage's stock, reflecting the broader impact of tech sector dynamics on the trust’s financial outlook.
