The rise of artificial intelligence (AI) catapulted NVIDIA to the top of the ranking of the most valuable companies on the planet in the middle of this year. Considered by many to be the new goose that lays the golden eggs has just broken a new record, but it is one that may not please many investors.
The firm behind AI chips like the NVIDIA B200, H100 and A100 recorded a fall of 9.53% in the price of its shares. Its shares were quoted at $119.37 at the close of trading on Monday, however, the market closed on Tuesday at $108.00. This collapse had a direct impact on its market capitalization.
NVIDIA loses $279 billion in one day
When we talk about market capitalization, we are generally referring to the value of a company that is obtained by adding up all of its outstanding shares at the close of the market. Since NVIDIA’s share price plummeted, the company lost $279 billion of its capitalization.
The Wall Street Journal and Reuters agrees This is the biggest loss of market value for a US company in one day. This scenario, however, occurs when the main US indexes, including NASDAQ and Dow Jones, closed their worst day since August 5.
Other tech giants involved in the world of AI also had a very bad day. Microsoft shares fell 1.85%, while Apple 2.72% and Google’s by 3.94%. So what is happening these days? Analysts are considering a variety of hypotheses.
BlackRock, the world’s largest asset manager, said Tuesday in a report posted on its website Many companies that have invested millions of dollars in AI development have begun to worry. They fear that the benefits will not come as quickly as they had hoped.
“We see a disconnect between the short-term outlook of some investors and the long-term visions “technology and cloud service providers,” BlackRock says, adding that shareholders may not view further investment in AI as the best use of capital.
Focusing exclusively on NVIDIA, the company has suffered another blow in the last few hours. According to BloombergThe US Department of Justice has issued a subpoena for an investigation into whether the firm violated antitrust laws.
Images | NVIDIA | Xataka with Bing Image Creator
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