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.
Have you read?
The Top 100 Highest-paid CEOs in America.
Countries With Lowest Rate of Economic Growth in 5 Years.
Countries Most in Debt to China.
Most Attractive Cities for Global Talent.
Largest economies in the world by Share of Global GDP.
Add CEOWORLD magazine to your Google News feed.
Follow CEOWORLD magazine headlines on: Google News, LinkedIn, Twitter, and Facebook.
Copyright 2024 The CEOWORLD magazine. All rights reserved. This material (and any extract from it) must not be copied, redistributed or placed on any website, without CEOWORLD magazine' prior written consent. For media queries, please contact: info@ceoworld.biz