heavyweight Nvidia tumbled 9.5% on Tuesday in the deepest-ever single-day decline in market value for a US company, as investors softened their optimism about artificial intelligence in a broad market selloff following tepid economic data.lost $279-billion in market capitalisation, a major indication that investors are becoming more cautious about emerging AI technology that has fuelled much of this year’s stock market gains.
“Such a massive amount of money has gone to tech and semiconductors in the last 12 months that the trade is completely skewed,” said Todd Sohn, an ETF strategist at Strategas Securities.CEO Pat Gelsinger and key executives are expected to present a plan to the company’s board of directors to slice off unnecessary businesses and revamp capital spending at the struggling chip maker.
At its July record high close, Nvidia had almost tripled in 2024. Its recent losses leave it up 118% year to date.Nvidia’s record one-session loss in stock market value was greater than the $232-billion decline suffered by Facebook owner Meta Platforms on 3 February 2022, when the social media company issued a dismal forecast, according to LSEG data.