Nvidia Just Lost $500 Billion Over Three Days, But It Means Nothing

nvidia rtx 50 series

Earlier today, it was revealed that Nvidia suffered a monumental dip in the stock market, with more than $500 billion worth of shares being wiped clean off the board. This was the single-largest short-term loss in history for any company ever, but for Nvidia, it’s a drop in the ocean. Just a few days ago, Nvidia became the most valuable company in the world, with the organisation’s net worth skyrocketing to around $2.9 trillion.

This drop saw Nvidia’s market cap drop by 13% over three days. In the last year, the firm has seen its share price triple as the growth of artificial intelligence drives up the value of the chips and computing hardware that the company manufactures.

Where Did It Go?

Many analysts have fostered concerns that the AI bubble is about to burst, and that is represented majorly in Nvidia’s performance in the stock market.

In a statement handed to The Guardian, a senior market analyst said:

Some profit-taking seems entirely reasonable given NVIDIA’s meteoric rise. The stock was up over 180% this year alone. But if it continues to lose ground, then there’s a danger of contagion, with selling spreading to other big tech names. If that were the case, then the market could be in for a deeper and more protracted pull-back.

The analyst – David Morrison – admitted that there are ‘few indications’ that investors are thinking about that right now, so the expectation is that Nvidia will remain a stalwart force on the board. Another contributor to the downturn is reportedly the CEO, Jensen Huang, selling off a fair chunk of his $95 billion worth of Nvidia stock.

As the company hit a recent all-time high, it overtook the likes of Microsoft and Apple, soaring due to smart pricing and a dominance over the chip manufacturing market. Some research indicates that Nvidia’s chips have allowed the company to stake a claim to around 95% of the AI market – at that rate, Nvidia can set whatever price it wants.

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