Chipmaker Nvidia’s stock fell Monday, its worst day since the global market sell-off brought on by the coronavirus outbreak in March 2020.
The decline coincided with a worldwide sell-off in tech stocks due to concerns about US leadership in the AI space. A Chinese artificial intelligence startup’s claims of advancements were a major source of those anxieties.
One of the main winners of the artificial intelligence boom in tech equities, the chipmaker’s shares fell as much as 18%. Nvidia’s market value fell below $3 trillion as a result. Nevertheless, over the past two years, the company’s stock has increased by more than 480%.
However, the decline resulted in a loss of market value of around $600 billion. According to Bloomberg, the largest market value decline in the history of the US stock market would occur if shares of the computer giant closed at this level. Additionally, it would be almost twice as much as the second-worst decline in history, which was also witnessed by Nvidia stockholders in September 2024 when the company’s value dropped by $279 billion.
From one point of view, Nvidia’s Monday market value loss exceeded the combined market values of Exxon Mobil, Costco, Home Depot, and Bank of America.
In 2023, Nvidia soared into the top five most valuable corporations in the world as a result of the AI-driven spike in mega-cap tech equities. The corporation continued to grow, surpassing Alphabet, Microsoft, and Apple, the most valuable company in the world. Nvidia’s most recent high was a staggering $3.7 trillion.
Following Monday’s losses, Nvidia’s valuation dropped to almost $2.9 trillion, and Apple regained its position as the most valuable corporation in the world.
The Dow Jones Industrial Average, which started the day lower but ended the day higher, was also negatively impacted by Nvidia’s decline. In November, Nvidia took the place of rival chipmaker Intel on the esteemed 30-stock index. A roughly 3% decline was seen in the Nasdaq Composite, which more closely tracks publicly traded tech companies.
Because of the worldwide IT market sell-off, the S&P Technology sector is now the only one that has lost money this year.