The popular tech stock, NVIDIA ($NVDA), suffered its largest drop in a single day, losing $279 billion. While this is a massive loss for the company, it helps to put Microsoft in a winning position for the market cap crown as the two continuously battle it out.
NVIDIA Is Taking A Huge Loss… Why?
It would seem as if NVIDIA is facing an immense loss, as the company reportedly also lost $500 billion over just three days back in June. At the time, that news didn’t, by any means, even put a dent in the company, as they were declared the world’s biggest company by market capitalization earlier this year.
But the losses seem to keep coming. Why?
Well, for one, the hype around AI is starting to die down. At one point, AI was the biggest topic in the world. And while it is still in discussion, many are starting to suspect the stock hype around it to lack any real substance.
With the company constantly making high-end GPUs, many other companies and tech enthusiasts were excited about the future of AI. But just this week, reports surfaced that OpenAI is seeking additional investments from major tech companies in hopes of staying afloat.
It would seem as if ChatGPT’s worth was never raised above being anything but a search engine.
Microsoft even took a hit when it came to the realm of AI, as the company’s Windows Recall AI feature was deemed a “privacy nightmare” by many.
Rumors Surfaces Regarding NVIDIA And US Department Of Justice
A recent rumor also surfaced online regarding NIVIDA and the US Department of Justice. Supposedly, the government organization has issued a subpoena to NVIDIA. Nothing has been confirmed, but many speculate it is on anti-trust grounds.
So, what does this mean for the future of NVIDIA? More importantly, what does this mean for the future of tech?
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