Nvidia Stock Decline: $437 Billion Wiped from Markets
Nvidia Stock and Market Impact
Nvidia stock extended its weeklong decline on Wednesday after a report from Bloomberg said the company received a subpoena from the Department of Justice. Shares of Nvidia were down as much as 3% in Wednesday morning trades, a day after the stock experienced the largest one-day market value wipeout in history when it fell nearly 10% on Tuesday.
Stock Market Fluctuations
The stock has since ping-ponged between slight gains and losses for the day, with the stock lower by 0.17% at 12:01 p.m. in New York. Since the AI darling reported its second-quarter earnings last week, the stock dropped as much as 16%, erasing $505 billion in market value. Based on current levels, Nvidia's weeklong stock decline has slightly recovered to $437 billion.
Investors' Concerns and Future Outlook
The DOJ's antitrust investigation into Nvidia is another concern for investors who worry about just how long the company's dominance of the AI chip sector can last. Nvidia captured over 90% of the GPU market in 2023, according to estimates from JPMorgan.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.