Shares of the chipmaking giant Nvidia plunged on Monday following an announcement by a Chinese firm. This marked the worst day for chipmaker’s shares after the global market sell-off in 2020 due to the pandemic. The plunge is the direct result of the advances claimed by a Chinese startup and a global share sell-0f over the fears of America’s leadership in the tech and AI sector, which it has dominated up until now.
The chipmaker’s shares fell as much as 18%, concurring a loss of around $600 billion. This pushed the market cap of Nvidia to below $3 trillion. However, shares of the firm are still almost 480% over the last two years.
As per Bloomberg, this plunge in Nvidia’s share price is the biggest market value drop in the history of the American stock market. Moreover, it is nearly double the second-worst value drop, which is also in the name of Nvidia when its market value dropped by $279 billion in September 2024.
You Might Also Like: CNN Revamps its Processes to Become More Future-Ready
Nvidia has risen to the top of the market due to its AI prowess and ability to make some really fast and smart chips. The AI-fueled surge took the company to the top pedestal of the most valuable company in the world, surpassing tech giants like Alphabet, Microsoft, Amazon, and even, at one point, Apple. At the height of its reign, Nvidia was worth around $3.7 trillion. However, with this plunge in its value, Nvidia’s value has sunk to $2.9 trillion.
