Nvidia suffers $279 bn loss in market value as shares tumble by 9.5%
Tuesday’s decline in chip stocks was reflected in the overall performance of Wall Street, with the Nasdaq down 3.3% and the S&P 500 dropping 2.1%.
Nvidia lost USD 279 billion in market capitalization on Tuesday as the shares of the chipmaking giant dropped by a whopping 9.5%, the sharpest single-day decline in market value for a U.S. company, Reuters reports.
The dramatic fall in shares is being attributed to dampened investor optimism about the boom in AI.
The PHLX chip index tumbled 7.75%, its steepest one-day drop in 4 years.
Nvidia’s quarterly forecast last week did not meet lofty investor expectations. Though the company posted a 122% increase in second-quarter revenues compared with the same period last year, investors are worried over its slowing growth and production issues.
Meanwhile, Intel’s shares have dropped about 9% after media reports that CEO Pat Gelsinger and other top officials of the struggling company are due to present a plan to the firm’s board of directors to let go of unviable businesses and revamp capital spending.
Tuesday’s decline in chip stocks was reflected in the overall performance of Wall Street, with the Nasdaq down 3.3% and the S&P 500 dropping 2.1%. On Semiconductor and Monolithic Power Systems dropped by more than 9%.
Major Asian tech firms such as Samsung Electronics and Tokyo Electron were also sharply lower.
