Nvidia Share Price Drops 9% Amidst Growing Fears of US Recession
Nvidia Share Price Decline Explained
Nvidia's share price has taken a sharp downturn, with the stock losing 9.53% and closing at $108.00 on the NASDAQ. This significant decline follows the announcement from the US Justice Department about subpoenas issued to Nvidia amid an investigation into antitrust violations involving AI processors. The fallout resulted in Nvidia's market cap diminishing by $279 billion, highlighting the waning investor enthusiasm regarding AI technology amid rising economic concerns.
Market Reactions and Broader Impact
- The sell-off began on Tuesday, mirroring fears across financial markets in both Asia and the US.
- Other tech giants like Alphabet, Apple, and Microsoft also faced declines, contributing to the overall market dip.
- Nvidia's quarterly report saw analysts boosting annual net income estimates to $70.35 billion, though amidst a trading valuation shift from over 40 to 34 times expected earnings.
This wave of caution has spread to Asian markets, where technology firms like TSMC and Samsung Electronics are also witnessing sharp declines. With key employment figures imminent, further market volatility is anticipated.
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.