Nvidia suffers record $279 billion loss in market value as Wall St drops

Nvidia lost $279 billion in market capitalization, a major indication that investors are becoming more cautious about emerging AI technology that has fueled much of this year's stock market gains.The latest jitters about AI come after Nvidia last Wednesday gave a quarterly forecast that failed to meet the lofty expectations of investors who have driven a dizzying rally in its stock.

Worries about slow payoffs from hefty AI investments have dogged Wall Street's most valuable companies in recent weeks, with shares of Microsoft and Alphabet trading lower following their quarterly reports in July. Tuesday's weakness in chip stocks accompanied wide declines on Wall Street, with the Nasdaq dropping 3.3 per cent and the S&P 500 down 2.1 per cent.

Investors will get a host of data on the labor market this week, culminating in Friday's key government payrolls report.

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Leveraged Nvidia ETF issuers saw trading surge in bearish products ahead of earningsInterest in leveraged exchange-traded funds that allow investors to profit when shares of Nvidia fall grew steadily ahead of the chipmaker's quarterly results, according to data from some of the companies that issued the products.
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Nvidia's forecast dampens AI enthusiasm in other tech stocksShares of Nvidia and other technology heavyweights fell late on Wednesday, a discouraging sign for investors betting that a strong forecast from the dominant seller of AI chips would fuel fresh gains in Wall Street's most valuable companies.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »