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CEOWORLD magazine - Latest - Banking and Finance - Nvidia’s Record-Breaking Market Loss: $279 Billion Wiped Out in a Day

Banking and Finance

Nvidia’s Record-Breaking Market Loss: $279 Billion Wiped Out in a Day

Nvidia witnessed an unprecedented stock market crash on Tuesday, erasing $279 billion in market value in what is now the largest single-day loss ever recorded in U.S. history. To put the scale of this loss in perspective, it exceeds the total market capitalization of several major American corporations, including McDonald’s and Chevron.

The sharp decline began during regular trading hours, with Nvidia’s shares plunging more than 9%. The downward trend continued in after-hours trading, with shares dropping an additional 2%. The selloff was triggered by news of a Department of Justice (DOJ) subpoena related to an antitrust investigation.

Jensen Huang, Nvidia’s CEO and the company’s largest individual shareholder, experienced a personal financial setback as his wealth shrank by $10 billion due to the market collapse. However, by Wednesday afternoon, the company’s shares had shown signs of stabilization, rising by about 1%.

Despite this recent turmoil, Nvidia remains a dominant force in the artificial intelligence (AI) chip market, holding approximately 80% market share. Addressing concerns surrounding the DOJ’s antitrust investigation, a company spokesperson stated that Nvidia “wins on merit,” emphasizing that its leadership position is backed by strong benchmark performance and the value it provides to its customers, who have the freedom to select the best solutions for their needs.

Even with the historic loss, Nvidia’s stock performance for the year remains impressive, having surged by 118% year to date. The company’s strong foothold in the rapidly growing AI sector and its resilient recovery following the initial market shock reflect its ongoing relevance and competitiveness in the technology industry.

 

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CEOWORLD magazine - Latest - Banking and Finance - Nvidia’s Record-Breaking Market Loss: $279 Billion Wiped Out in a Day
Anna Siampani
Anna Siampani, Lifestyle Editorial Director at the CEOWORLD magazine, working with reporters covering the luxury travel, high-end fashion, hospitality, and lifestyle industries. As lifestyle editorial director, Anna oversees CEOWORLD magazine's daily digital editorial operations, editing and writing features, essays, news, and other content, in addition to editing the magazine's cover stories, astrology pages, and more. You can reach Anna by mail at anna@ceoworld.biz