Nvidia suffers record US$279 billion loss in market value

Nvidia shares plunged 9.5% on September 3, marking the largest single-day decline in market value for a U.S. company, wiping out $279 billion in market capitalization.

This sharp drop reflects growing investor caution about the AI sector, which has driven significant stock market gains this year. The decline was part of a broader market selloff triggered by weak economic data, with the PHLX chip index also tumbling 7.75%, its worst drop since 2020.

Nvidia record loss

Nvidia’s downturn followed a quarterly forecast that failed to meet investors’ high expectations, raising concerns about the returns on AI investments.

Intel shares fell nearly 9% amid reports of planned restructuring and capital spending cuts. The selloff extended to other tech giants like Microsoft and Alphabet, reflecting wider skepticism about the immediate profitability of AI.

The broader market also saw declines, with the Nasdaq dropping 3.3% and the S&P 500 down 2.1%. Investors are now focusing on the Federal Reserve’s upcoming policy decision on September 18, with expectations of an interest rate cut, and anticipating key labor market data later this week.