Nvidia loses US$279 billion in market value in biggest single-day decline for a U.S. company

Nvidia shares dropped 9.5 per cent on Sep. 3, 2024.

This meant a loss of US$279 billion (S$365 billion) in market capitalisation.

According to Reuters, this is the deepest-ever single-day decline in market value for a U.S. company.

The sharp drop was due to a quarterly forecast by Nvidia on Aug. 28, 2024 that failed to meet investor expectations.

Nvidia

Nvidia is known for its graphics processing units (GPUs).

As of February 2024, it had grown exponentially in value, surpassing even Alphabet and Amazon in valuation thanks to the Artificial Intelligence (AI) boom powered by Nvidia chips.

Betting on the future of generative AI technology, investors had previously led a dizzying stock rally that made Nvidia the most valuable company in the world back in June 2024.

Investors are now reconsidering their hefty AI investments at the moment, following concerns about "slow payoffs", and whether revenues from generative AI will justify the billions spent, Reuters reported.

Top photo from Canva & Nvidia Newsroom.