Chipmaker Nvidia’s stock price plunged on Monday, its worst day since the March 2020 global market crash caused by the coronavirus pandemic.
The selloff comes amid a sell-off in global tech stocks on concerns about US leadership in AI. These concerns were primarily driven by advances claimed by Chinese artificial intelligence startups.
Shares of the semiconductor maker, one of the main beneficiaries of the artificial intelligence boom in tech stocks, plunged 18%. This pushed Nvidia’s market value below $3 trillion. Still, the company’s stock price has risen more than 480% in the past two years.
However, this decline resulted in a loss in market value of more than $520 billion. According to Bloomberg, if the tech giant’s stock price closes at this level, it would be the biggest drop in market capitalization in U.S. stock market history. This is also nearly double the second-worst decline in history that NVIDIA shareholders experienced in September 2024, when the company’s value fell by $279 billion.
For some perspective, Nvidia lost more market value on Monday than the entire market value of Exxon Mobil, Costco, Home Depot and Bank of America.
An AI-driven rally for mega-cap tech stocks has propelled Nvidia into the top five most valuable companies in the world in 2023. The meteoric rise didn’t stop there, as the company quickly surpassed Alphabet and Microsoft to become the number one company by market capitalization. Apple in the world. At its most recent peak, Nvidia’s revenue reached $3.7 trillion.
Monday’s loss reclaimed Apple’s title as the world’s most valuable company, and reduced Nvidia’s value to about $2.8 trillion.
Nvidia’s decline also caused the Dow Jones Industrial Average to drop more than 130 points. Nvidia joined the prestigious 30-stock index in November, replacing rival chipmaker Intel. The Nasdaq Composite Index, which more closely tracks publicly traded tech companies, fell about 3%.
The global selloff in tech stocks also means the S&P Technology sector is in the red for the year so far, making it the only sector to fall during the period.
