Machine Learning Answers: If Nvidia Stock Drops 10% A Week, What's The Chance It'll Recoup Its Losses In A Month?

Jen-Hsun Huang, president and chief executive officer of Nvidia Corp., gestures as he speaks during ... [ ] the company's event at the 2019 Consumer Electronics Show (CES) in Las Vegas, Nevada, U.S., on Sunday, Jan. 6, 2019. We found that if Nvidia Stock drops 10% or more in a week (5 trading days), there is a solid 36% chance it'll recover 10% or more, over the next month (about 20 trading days) Nvidia stock has seen significant volatility this year. While the company has been impacted by the broader correction in the semiconductor space and the trade war between the U.S. and China, the stock is being supported by a strong long-term outlook for GPU demand amid growing applications in Deep Learning and Artificial Intelligence. Considering the recent price swings, we started with a simple question that investors could be asking about Nvidia stock: given a certain drop or rise, say a 10% drop in a week, what should we expect for the next week? Is it very likely that the stock will recover the next week?