Chipmaker Nvidia suffered a sharp drop in shares, losing its status as the world's most valuable company. Over the course of three trading days, the stock fell 13%, resulting in a loss of about $430 billion in market capitalization.
Nvidia's loss of leadership
Sharp drop in quotes
Shares of chip maker Nvidia suffered a sharp decline in three days of trading, falling by 13%. This was the largest three-day drop in the history of the company, the value of which decreased by approximately $430 billion. Now Nvidia's capitalization is estimated at less than $3 trillion, which means the loss of the positions of the most valuable company, giving way to Microsoft and Apple.
A chain reaction among chip manufacturers
The drop in Nvidia quotes exceeded the critical level of 10% and led to a decline in the shares of other players in the microelectronics industry. Shares of Broadcom fell 4%, Qualcomm declined 5.5% and ARM Holdings Plc lost 5.8% of its value. This indicates the potential impact of market fluctuations on the entire chip manufacturing industry.
Growth and dominance in AI
Despite recent events, Nvidia continues to enjoy popularity on Wall Street thanks to a sharp rise amid growing demand for artificial intelligence. During 2023, the value of the company increased by approximately 240%, and in the current year - by 140%. In comparison, it took Microsoft 945 days and Apple 1,044 days to reach such growth in capitalization from $2 trillion to $3 trillion, while Nvidia covered the distance in just 96 days.
Glossary
- Nvidia is a leading American manufacturer of graphics processors and AI-based systems.
- Microsoft is a world-renowned technology corporation, developer of software and computer systems.
- Apple is an innovative company, a manufacturer of smartphones, computers and other digital devices.
- Broadcom is a semiconductor device and software company.
- Qualcomm is an American company, developer and manufacturer of microcircuits for smartphones and telecommunications systems.
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Discussion of the topic – Nvidia: Shares of the chipmaker fell 13%, the biggest three-day drop in history
Shares of chipmaker Nvidia fell 13% in three trading days, wiping about $430 billion off the company's market capitalization. That marked the biggest three-day loss in Nvidia's history and crossed the 10% correction threshold, dragging down other chip makers.
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Andrii
It is not surprising that the company's shares have fallen, because recently their prices have reached cosmic heights. After all, there is a limit to everything. 🤷♂️ I wonder if Nvidia can continue to actively develop AI and maintain a leadership position?
Oksana
The drop in Nvidia shares is only a temporary correction in the market. The company remains a leading player in AI and high-performance computing. They have great potential for future growth. 📈
Hans
I had no doubt that Nvidia's market capitalization could not grow forever. But $430 billion is a really huge loss in three days! It is interesting to what extent this will affect the development of the company in the near future. 🤔
Grytsyk
Phi, here are all your trends and new-fangled things! Nothing good will come of them, you will forget about your Nvidia in a year or two, like last year's snow. It would be better to do real work, and not to chase nonsense. 😒
Sofia
I don't understand the skepticism of @Grytsyk! Artificial intelligence is the future, and Nvidia plays a key role in its development. Of course, stock price corrections are possible, but in the long run, this industry will only grow. 🚀
Pierre
In my opinion, the drop in Nvidia shares is a great investment opportunity! The company has strong potential, and when the situation stabilizes, their value will rise again. It is worth buying shares now, while the price is lower. 💰
Marija
I think the market reaction to Nvidia is a bit overblown. Despite the loss, the company remains one of the industry leaders. I am sure that they will quickly recover and continue their rapid development. 💪
Antonio
The drop in Nvidia shares is a great reason to think about the risks of investing in high-tech companies. No industry is immune to market fluctuations. You need to diversify your portfolio and not invest all your funds in one company. 📊