Nvidia Faces Major Trouble, Analyst Says

Nvidia, the AI chipmaking giant that briefly became the world’s most valuable company, has found itself in a major slump.

Nvidia had been riding a wave of AI hype, reaching a $3 trillion valuation that put it on par with tech giants like Apple and Microsoft. I Photo: NVIDIA 

Nvidia recently experienced the worst single-day market value loss in stock market history, with a 9.5% decline in share price wiping out $279 billion of the company’s value, David Goldman wrote in an analysis for CNN.

To put the loss in perspective, only 27 companies in the world are worth as much as what Nvidia lost in value of late.

The $279 billion market cap drop is more than the total market value of companies like McDonald’s, Chevron, and Pepsi. Nvidia’s CEO Jensen Huang, the company’s largest individual shareholder, personally lost $10 billion from the share price collapse.

Nvidia had been riding a wave of AI hype, reaching a $3 trillion valuation that put it on par with tech giants like Apple and Microsoft.

However, the company’s decline began on June 18, when it reached a peak valuation of $3.3 trillion.

Now, with signs of stress in the U.S. economy, investors are becoming skeptical of Nvidia and other AI-related stocks, with concerns that economic weakness could cause companies to hesitate in investing in the promising but still uncertain AI technology, Ramishah Maruf also reported for CNN.