Nvidia's $406 Billion Stock Plunge Raises Concerns About Tech's Market Influence

Nvidia's $406 billion drop this week makes Bitcoin look calm | Mint

This week, Nvidia shed a fifth of its worth in two weeks with value plummeting by $406 billion and highlighting its market volatility compared to peers. Despite recent declines, Nvidia's stock is up over 100 percent this year, supported by major customers' spending plans. Nvidia Corp. wiped out about $406 billion in value this week, weighing on key equity benchmarks as jitters spread over the health of the US economy and an AI trade that may have gotten ahead of itself. The world's largest artificial-intelligence chipmaker shed a fifth of its value over the past two weeks. The declines also showcase a more pressing issue for investors in the $2.5 trillion giant: Its volatility now dwarfs its Magnificent Seven peers and makes Bitcoin look like a port of calm. Nvidia shares have swung between $90.69 and $131.26 over the past 30 trading days, with a record amount of market value being wiped out Tuesday. That level of gyration drove its 30-day realized volatility up to about 80 -- roughly four times the level of Microsoft Corp., double Bitcoin's figure and higher than meme stocks like Donald Trump's media company and Elon Musk's Tesla Inc. The stumble has pushed the stock to its worst two-week stretch in two years, data compiled by Bloomberg show. The declines came after a tepid forecast and issues for its Blackwell chip, which dented investor euphoria. Then came news that the US Justice Department sent subpoenas in an escalating antitrust probe. Adding to the gloom for chipmakers broadly, Broadcom Inc. released a disappointing sales forecast. "You're just in a very difficult market environment right this second," said Rhys Williams, chief strategist at Wayve Capital Management LLC, adding that the AI trade is still in its early days. Still, "on a day-to-day basis, where the bottom is, is anybody's guess." Nvidia's biggest customers -- notably Microsoft Corp., Meta Platforms Inc., Alphabet Inc., and Amazon.com Inc., which together comprise more than 40% of Nvidia's revenue, data compiled by Bloomberg show -- affirmed their spending plans in their most recent quarters. Nvidia's results last week confirmed this rosy view. Revenue more than doubled and came in better than expected, as did adjusted earnings. The company also gave a revenue forecast that beat the analyst consensus, though it failed to meet the high end of estimates. That result underwhelmed market participants who had grown accustomed to blowout reports. It also fed into concerns for those who are skeptical about the long-term outlook for spending on AI. It all means that as investors digest the evolution of the AI theme, the volatility in shares of Nvidia and other chipmakers will likely persist. For money managers who want to get in for the long haul, that could spell opportunity. "For a long-term investor, this is a good time to start picking away," said Williams at Wayve Capital. "If somebody handed me new money today, I would be enthusiastically adding some AI-related stocks."

Nvidia's $400 Billion Tumble This Week Makes Bitcoin Look Calm

(Bloomberg) -- Nvidia Corp. has wiped out more than $400 billion in value this week, weighing on key equity benchmarks as jitters spread over the health of the US economy and an AI trade that may have gotten ahead of itself. The world's largest artificial-intelligence chipmaker has shed a fifth of its value over the past two weeks. The declines also showcase a more pressing issue for investors in the $2.5 trillion giant: Its volatility now dwarfs its Magnificent Seven peers and makes Bitcoin look like a port of calm. Nvidia shares have swung between $90.69 and $131.26 over the past 30 trading days, with a record amount of market value being wiped out Tuesday. That level of gyration drove its 30-day realized volatility up to 80 -- more than four times the level of Microsoft Corp., double Bitcoin's figure and higher than meme stocks like Donald Trump's media company and Elon Musk's Tesla Inc. The stumble has pushed the stock toward its worst two-week stretch in two years, data compiled by Bloomberg show. The declines came after a tepid forecast and issues for its Blackwell chip, which dented investor euphoria. Then came news that the US Justice Department sent subpoenas in an escalating antitrust probe. Adding to the gloom for chipmakers broadly, Broadcom Inc. released a disappointing sales forecast. "You're just in a very difficult market environment right this second," said Rhys Williams, chief strategist at Wayve Capital Management LLC, adding that the AI trade is still in its early days. Still, "on a day-to-day basis, where the bottom is, is anybody's guess." Rewarding Year Of course, the stock has rewarded investors handsomely this year, even with the recent slide. The shares are still up more than 100% this year, adding about $1.3 trillion in market value. And Wall Street roundly expects that Nvidia remains well positioned as companies build out infrastructure related to AI, a process that's expected to last for several more quarters at least. Nvidia's biggest customers -- notably Microsoft Corp., Meta Platforms Inc., Alphabet Inc., and Amazon.com Inc., which together comprise more than 40% of Nvidia's revenue, data compiled by Bloomberg show -- affirmed their spending plans in their most recent quarters. Nvidia's results last week confirmed this rosy view. Revenue more than doubled and came in better than expected, as did adjusted earnings. The company also gave a revenue forecast that beat the analyst consensus, though it failed to meet the high end of estimates. That result underwhelmed market participants who had grown accustomed to blowout reports. It also fed into concerns for those who are skeptical about the long-term outlook for spending on AI. It all means that as investors digest the evolution of the AI theme, the volatility in shares of Nvidia and other chipmakers will likely persist. For money managers who want to get in for the long haul, that could spell opportunity. "For a long-term investor, this is a good time to start picking away," said Williams at Wayve Capital. "If somebody handed me new money today, I would be enthusiastically adding some AI-related stocks."

Nvidia's US$400 Billion Tumble This Week Makes Bitcoin Look Calm

(Bloomberg) -- Nvidia Corp. has wiped out more than US$400 billion in value this week, weighing on key equity benchmarks as jitters spread over the health of the US economy and an AI trade that may have gotten ahead of itself. The world's largest artificial-intelligence chipmaker has shed a fifth of its value over the past two weeks. The declines also showcase a more pressing issue for investors in the $2.5 trillion giant: Its volatility now dwarfs its Magnificent Seven peers and makes Bitcoin look like a port of calm. Nvidia shares have swung between $90.69 and $131.26 over the past 30 trading days, with a record amount of market value being wiped out Tuesday. That level of gyration drove its 30-day realized volatility up to 80 -- more than four times the level of Microsoft Corp., double Bitcoin's figure and higher than meme stocks like Donald Trump's media company and Elon Musk's Tesla Inc. The stumble has pushed the stock toward its worst two-week stretch in two years, data compiled by Bloomberg show. The declines came after a tepid forecast and issues for its Blackwell chip, which dented investor euphoria. Then came news that the US Justice Department sent subpoenas in an escalating antitrust probe. Adding to the gloom for chipmakers broadly, Broadcom Inc. released a disappointing sales forecast. "You're just in a very difficult market environment right this second," said Rhys Williams, chief strategist at Wayve Capital Management LLC, adding that the AI trade is still in its early days. Still, "on a day-to-day basis, where the bottom is, is anybody's guess." Rewarding Year Of course, the stock has rewarded investors handsomely this year, even with the recent slide. The shares are still up more than 100% this year, adding about $1.3 trillion in market value. And Wall Street roundly expects that Nvidia remains well positioned as companies build out infrastructure related to AI, a process that's expected to last for several more quarters at least. Nvidia's biggest customers -- notably Microsoft Corp., Meta Platforms Inc., Alphabet Inc., and Amazon.com Inc., which together comprise more than 40% of Nvidia's revenue, data compiled by Bloomberg show -- affirmed their spending plans in their most recent quarters. Nvidia's results last week confirmed this rosy view. Revenue more than doubled and came in better than expected, as did adjusted earnings. The company also gave a revenue forecast that beat the analyst consensus, though it failed to meet the high end of estimates. That result underwhelmed market participants who had grown accustomed to blowout reports. It also fed into concerns for those who are skeptical about the long-term outlook for spending on AI. It all means that as investors digest the evolution of the AI theme, the volatility in shares of Nvidia and other chipmakers will likely persist. For money managers who want to get in for the long haul, that could spell opportunity. "For a long-term investor, this is a good time to start picking away," said Williams at Wayve Capital. "If somebody handed me new money today, I would be enthusiastically adding some AI-related stocks."

Nvidia's $400 Billion Tumble This Week Makes Bitcoin Look Calm

Nvidia Corp. has wiped out more than $400 billion in value this week, weighing on key equity benchmarks as jitters spread over the health of the US economy and an AI trade that may have gotten ahead of itself. The world's largest artificial-intelligence chipmaker has shed a fifth of its value over the past two weeks. The declines also showcase a more pressing issue for investors in the $2.5 trillion giant: Its volatility now dwarfs its Magnificent Seven peers and makes Bitcoin look like a port of calm.

Nvidia's stock swoon turns attention to Big Tech's sway over markets

A tumble in the chipmaker's shares shaved $279 billion off Nvidia's market capitalization on Tuesday, the single largest one-day decline in market value on record for a U.S. company. The stock was rebounding on Wednesday, rising 1% in late morning trading.Shares of Nvidia and other Big Tech stocks have helped power the markets run to record highs this year. Their recent wobble is making investors nervous. A tumble in the chipmaker's shares shaved $279 billion off Nvidia's market capitalization on Tuesday, the single largest one-day decline in market value on record for a U.S. company. The stock was rebounding on Wednesday, rising 1% in late morning trading. Whether the steep fall is due to investors becoming more cautious towards the artificial intelligence trend that supercharged market returns this year or worries over the health of the U.S. economy, more trouble for Nvidia and other Big Tech stocks would likely spell trouble for the broader markets. Nvidia - along with Apple, Microsoft, Amazon and Alphabet - currently make up more than a quarter of the weight in the S&P 500 and over a third of the Nasdaq 100. Nvidia alone had comprised 23% of the S&P 500's year-to-date total return of 19.5% as of the end of August. Further losses in their shares would likely hurt those indexes, which hit record highs in July, unless stocks in other sectors of the market pick up the slack. "When you look at Nvidia as a market leader, it's not holding up despite very strong profits," said Jason Teh, chief investment officer of Vertium Asset Management in Sydney. "There's an old saying - if the troops can't follow the generals, it's a warning sign." Nvidia's quarterly forecast last week failed to meet the lofty expectations of investors even as second quarter revenue and profit topped estimates. "Those earnings last week were fine; they exceeded expectations," said Steve Sosnick, market strategist at Interactive Brokers. "But the magnitude of the beats is shrinking quarter by quarter and that's not lost on investors." Index funds that track the S&P 500, Nasdaq 100 and other benchmarks also stand to suffer if Nvidia slides, because of the stock's increasingly heavy weighting in these indexes. The chipmaker has even more sway in more narrow indexes and exchange traded funds that focus on technology and semiconductor shares. Even with its recent slide, Nvidia shares have more than doubled in 2024, as of Tuesday's close, and the stock remains the best year-to-date performer in the S&P 500. Shares of the AI heavyweight are up a whopping 800% since October 2022. Nvidia's ascent has helped drive the valuation of the broader S&P 500 technology sector higher, causing some concerns about a bubble in tech stocks. But the sector's forward price-to-earnings ratio remains well below levels reached in 2000, during the dot-com era.

4 Big reasons behind Nvidia's record $250 billion-plus loss in one day, biggest-ever for an American company - Times of India

Shares of AI chip giant Nvidia appear to be in a freefall. Earlier this week, Nvidia stock tumbled 9.5% in the deepest ever single-day decline in market value for a US company. The company's market capitalisation declined by $279 billion, marking the steepest single-day fall for an American company. Since peaking on June 18, Nvidia's shares have lost roughly 20% of their value.Called the poster boy of the AI boom, Nvidia's stock has seen a jump of more than 650% since the start of the year 2023. Here are the likely reasons behind the massive fall. Fears of US government's regulatory pressure Tech giant Nvidia is facing increased regulatory scrutiny as the US Department of Justice has issued a subpoena to investigate potential antitrust practices. The company has maintained its innocence, claiming fair competition. However, analysts warn that regulatory oversight could intensify. Last week, Nvidia disclosed requests for information from both U.S. and South Korean regulators. The company's extensive investments in other AI companies have raised concerns among regulators. According to a report in Reuters, quoting investment analyst Dan Coatsworth, "Nvidia's influence extends beyond its own chips, potentially leading to questions about preferential treatment for its investees or customers." Analysts 'unhappy' with earnings report Investors' latest jitters are also said to be linked to the company's quarterly forecast that failed to meet analysts' lofty expectations. Despite steady growth and profit, Nvidia's quarterly forecast failed to meet expectations of investors even as second quarter revenue and profit topped estimates. "Those earnings last week were fine; they exceeded expectations," told Steve Sosnick, market strategist at Interactive Brokers, to Reuters. "But the magnitude of the beats is shrinking quarter by quarter and that's not lost on investors." Weakness in chip stocks The selloff extended to Wall Street's chip index, which dropped 7% as investor optimism about AI softened. Concerns that AI boom may be overrated The broader chip sector has also experienced a downturn, with the Wall Street chip index dropping 7%. Investor optimism about the AI boom has been tempered by concerns about delayed returns on significant investments. Nvidia's planned investment in OpenAI, valued at over $100 billion, further highlights the challenges and uncertainties in the AI market. The recent selloff in chip stocks, including Nvidia, reflects growing investor skepticism about the immediate benefits of the AI boom. As regulatory scrutiny intensifies and the market grapples with the long-term implications of AI, Nvidia's future remains uncertain. The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.

Stock rout, antitrust case - why is Nvidia suddenly in trouble?

Nvidia is currently in a major stream of trouble relating to its latest antitrust case, as per reports. However, it was just a little while ago that the chip makers had become the world's most valuable company because of their emerging technology that had sent its value boosting. Nvidia, one of the giant AI chip makers in the world, is currently reeling from major loss in its antitrust case, and has also seen the worst day in the history of the stock market on Tuesday, as per reports. Reports suggest that it has lost nearly 9,5% of its stock value in recent times, and is being one of the examples of a major examples of a 'crash of fame.' The amount of value that depreciated in regards to the antitrust case, has beaten even Meta's record of losing $240 billion in the year 2022. Nvidia is steadily outpacing all devalue records in recent times, and has in fact been in a steady declining trend from June 18, even though it had reached a major record of being at its highest value in stock markets. Nvidia as the major chip manufacturers in the United States, is being credited with an AI chip that has sent the company's value off the charts, but the wave of the same is somehow declining after multiple delay dates of the product's launch. The blockbuster launch as planned by Nvidia somehow waned off and investors, who were looking for a bigger bang in terms of the upside, somehow began pushing away. Also Read : The tallest Paralympian in history now has a bed that fits him There are major sets of legal problems at Nvidia, starting with a major value antitrust case, that is being investigated by the Federal Government. Tuesday's drop in stock prices were majorly because of the ongoing legal process, as the Justice Department served a subpoena to the organization in regards to the antitrust violations. However, Nvidia has officially claimed that no such subpoena has been received by them. However, the damage was already done. Also Read : 'Power Book II: Ghost' Season 4, Part Two: Remaining episode schedule, finale details and more Is Nvidia losing its value? Nvidia is steadily losing out on its value, dropping nearly 9% in the past few weeks, with millions falling off from its company value. Will the value of Nvidia stock prices recover? Nvidia's stock prices may recover upon the launch of its state-of-the-art AI chip, but there are still concerns about the same.