of AI heavyweight Nvidia tumbled 9.5% on Tuesday in the deepest ever single-day decline in market value for a U.S. company, as investors softened their optimism about artificial intelligence in a broad market selloff following tepid economic data.
Intel dropped nearly 9% after Reuters reported 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 chipmaker. At its July record high close, Nvidia had almost tripled in 2024. Its recent losses leave it up 118% year to date.
However, minority expectations of a 50 basis point cut rose to 37% from 30% after data on Tuesday signaled activity in the manufacturing sector remains soft.