NVIDIA Loses $279 Billion in Market Value in Just One Day

NVIDIA closed Tuesday with the biggest one-day drop in market value for a U.S. company in history, dropping $279 billion after its shares fell more than 9%.

The AI ​​ambassador’s “suffering” reflects a general decline in tech companies. NVIDIA was the company that felt the most devaluation after a recent release of negative data for the tech manufacturing sector.

After a 9% drop in its shares, the GeForce owner suffered another 2.4% drop in after-hours trading on news that the company had received a subpoena from the US Department of Justice. That’s because NVIDIA is facing an antitrust investigation in its home country.

NVIDIA’s drop in value is the largest a company has ever seen in a single day. That record was previously held by Meta, which lost $232 billion in February 2022.

The tech retreat didn’t just affect the United States. Companies like Samsung, SK Hynix, TSMC, ASML and Softbank also saw their stocks fall this week.

NVIDIA’s massive decline in value is only possible because of how much the company has grown due to its dominance in the AI ​​market. Now, its decline is fueling existing concerns that the segment is a bubble.

While companies are investing heavily in the AI ​​hype, the public has not been equally excited about the new technology. Estimates suggest that the industry needs to generate $600 billion annually just to make up for what has already been spent, so this latest tech pullback is especially scary for investors.

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Time will tell whether AI is a bubble or not. If it is, the burst will be historic, and should resonate across all segments of the technology industry.

Source: TechSpot