Nvidia evaporated nearly $300 billion in one day

At the end of the trading session on September 3, Nvidia's stock price fell 9.5%, causing the capitalization of the world's largest chip maker to "evaporate" nearly 300 billion USD.

Nvidia’s market capitalization “evaporated” $279 billion in trading on September 3 – a record for an American company. This is a sign that investors are increasingly cautious about the global AI wave. In the after-hours trading session, the stock continued to decline.

Nvidia shares fall, sending US stock market into red

Nvidia’s plunge dragged down many other chip stocks. Broadcom fell 6%, Qualcomm fell nearly 7%, AMD fell 7.8%, Intel fell nearly 8%, and Marvel fell 8.2%. The VanEck Semiconductor ETF, which tracks semiconductor stocks, fell 7.5%, its worst day since March 2020.

US stock markets reacted after the Institute for Supply Management (ISM) released its monthly survey showing that domestic manufacturing activity was weaker than forecast, raising concerns about the health of the economy and also raising hopes that the Fed will cut interest rates.

Semiconductor stocks have surged over the past year on expectations that the AI ​​boom will spur companies to buy more chips and memory to keep up with the computing demands of AI applications. This segment is led by Nvidia, which dominates the AI ​​data center chip market. Nvidia shares are up 118% in 2024.

Last week, Nvidia reported $30 billion in revenue for the three months ended in July, beating investors’ expectations. Revenue from its data center business, which includes AI chips, grew 154% year-over-year in 2023, thanks in part to internet and cloud giants buying billions of dollars worth of its chips each quarter. The company also forecast an 80% increase in sales this quarter.

Source: https://baoquocte.vn/nvidia-boc-hoi-gan-300-ty-usd-trong-mot-ngay-284977.html