Nvidia, a leading AI chipmaking company, experienced a significant decline in its stock market value. It recorded the worst day in stock market history, losing $279 billion in market value, surpassing the previous record set by Meta. This decline is equivalent to the total value of several major companies. The CEO of Nvidia, who is also the company’s largest individual shareholder, lost $10 billion in wealth due to the sharp decline. The decline is attributed to investors’ growing skepticism towards AI stocks amid concerns about the US economy and potential weakness in the tech sector. Despite strong earnings, Nvidia’s stock fell due to a less optimistic outlook. Other companies in the AI chipmaking sector, such as Microsoft and TSMC, have also experienced stock declines. Nvidia may also face potential legal issues as it reportedly received a subpoena from the US Justice Department for an antitrust probe. However, the company maintains that its success is based on merit and value to customers. Despite these challenges, there are still bull investors who believe in Nvidia’s potential and consider the stock decline as a buying opportunity. The demand for Nvidia’s AI chips continues to grow alongside the increasing competition in the market.
