After experiencing its deepest single-day decline of 9.5%, the chip manufacturer Nvidia saw a staggering market value loss of $279 billion on September 3. The drop followed a broad market selloff, with the Nasdaq falling 3.3% and the S&P 500 down 2.1%.
Nvidia’s share prices declined by 9.5% to $108 apiece and lost $279 billion in market capitalization, marking its biggest one-day drop in market value, Reuters reported.
The fall in the share price of Nvidia is attributed to investors’ softened optimism about artificial intelligence in a broad market selloff following tepid economic data.
Nvidia’s fall on September 3 came after its stock price almost tripled in 2024. Earlier, its shares have fallen 14% in the three sessions since it reported earnings that failed to meet lofty expectations.
Nvidia’s loss has surpassed the US$232 billion decline suffered by Facebook-owner Meta Platforms on February 3, 2022, when the social media company issued a dismal forecast, according to LSEG data.
Nvidia achieved a remarkable milestone by becoming a $1 trillion company in December 2023 due to the increasing demand for generative artificial intelligence tools among tech companies of all sizes.