Nvidia's Record $279 Billion Market Value Loss Highlights Big Tech's Market Influence

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

NEW YORK (Reuters) - 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. (Reporting by Lewis Krauskopf; additional reporting by Tom Westbrook and Suzanne McGee; Editing by Ira Iosebashvili and Jonathan Oatis)

Nvidia's stock swoon turns attention to Big Tech's sway over 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. (Reporting by Lewis Krauskopf; additional reporting by Tom Westbrook and Suzanne McGee; Editing by Ira Iosebashvili and Jonathan Oatis)

Nvidia suffers record $279 billion loss in market value as Wall St drops

Shares of Nvidia plunged 9.5% in a historic single-day decline, shedding $279 billion in market value. This drop reflects investor caution about AI technology amid a broader market selloff following weak economic data. The PHLX chip index also fell significantly, highlighting concerns over the payoff from AI investments.Shares of AI heavyweight Nvidia tumbled 9.5% on Tuesday in the deepest ever single-day decline in market value for a U.S. company, as investors softened their optimism about artificial intelligence in a broad market selloff following tepid economic data. Nvidia lost $279 billion in market capitalization, a major indication that investors are becoming more cautious about emerging AI technology that has fueled much of this year's stock market gains. The PHLX chip index plummeted 7.75%, its biggest one-day drop since 2020. The latest jitters about AI come after Nvidia last Wednesday gave a quarterly forecast that failed to meet the lofty expectations of investors who have driven a dizzying rally in its stock. "Such a massive amount of money has gone to tech and semiconductors in the last 12 months that the trade is completely skewed," said Todd Sohn, an ETF strategist at Strategas Securities. Intel dropped nearly 9% after Reuters reported CEO Pat Gelsinger and key executives are expected to present a plan to the company's board of directors to slice off unnecessary businesses and revamp capital spending at the struggling chipmaker. Worries about slow payoffs from hefty AI investments have dogged Wall Street's most valuable companies in recent weeks, with shares of Microsoft and Alphabet trading lower following their quarterly reports in July. "Some recent research has questioned if the revenues from AI alone will eventually justify this wave of capital spending on it. When assessing AI capex by individual companies, investors must consider if they are making the best use of their balance sheets and capital," BlackRock strategists wrote in a client note on Tuesday. At its July record high close, Nvidia had almost tripled in 2024. Its recent losses leave it up 118% year to date. Tuesday's weakness in chip stocks accompanied wide declines on Wall Street, with the Nasdaq dropping 3.3% and the S&P 500 down 2.1%. Investors mostly expect the Federal Reserve to cut interest rates by 25 basis points in its Sept. 18 policy announcement, according to CME's FedWatch Tool. However, minority expectations of a 50 basis point cut rose to 37% from 30% after data on Tuesday signaled activity in the manufacturing sector remains soft. Investors will get a host of data on the labor market this week, culminating in Friday's key government payrolls report. "There's concern about what the job numbers are going to show, about seasonality," warned Steve Sosnick, a market strategist at Interactive Brokers. The chip index is now up 14% in 2024, just under the S&P 500's 16% gain. Nvidia's record one-session loss in stock market value was greater than the $232 billion decline suffered by Facebook-owner Meta Platforms on Feb. 3, 2022, when the social media company issued a dismal forecast, according to LSEG data. Following Nvidia's quarterly report last week, the mean analyst estimate for annual net income through January 2025 has climbed to $70.35 billion from about $68 billion ahead of last week's report. Those increased earnings estimates, combined with Nvidia's share losses, have the chipmaker now trading at 34 times expected earnings, down from over 40 in June and in line with its two-year average. Broadcom, another chipmaker that has benefited from the boom in AI computing, fell 6.2% ahead of its quarterly report on Thursday.

Nvidia suffers record $279bln loss in market value as Wall St drops

Shares of AI heavyweight Nvidia tumbled 9.5% on Tuesday in the deepest ever single-day decline in market value for a U.S. company, as investors softened their optimism about artificial intelligence in a broad market selloff following tepid economic data. Nvidia lost $279 billion in market capitalization, a major indication that investors are becoming more cautious about emerging AI technology that has fueled much of this year's stock market gains. The PHLX chip index plummeted 7.75%, its biggest one-day drop since 2020. The latest jitters about AI come after Nvidia last Wednesday gave a quarterly forecast that failed to meet the lofty expectations of investors who have driven a dizzying rally in its stock. "Such a massive amount of money has gone to tech and semiconductors in the last 12 months that the trade is completely skewed," said Todd Sohn, an ETF strategist at Strategas Securities. Intel dropped nearly 9% after Reuters reported CEO Pat Gelsinger and key executives are expected to present a plan to the company's board of directors to slice off unnecessary businesses and revamp capital spending at the struggling chipmaker. Worries about slow payoffs from hefty AI investments have dogged Wall Street's most valuable companies in recent weeks, with shares of Microsoft and Alphabet trading lower following their quarterly reports in July. "Some recent research has questioned if the revenues from AI alone will eventually justify this wave of capital spending on it. When assessing AI capex by individual companies, investors must consider if they are making the best use of their balance sheets and capital," BlackRock strategists wrote in a client note on Tuesday. At its July record high close, Nvidia had almost tripled in 2024. Its recent losses leave it up 118% year to date. Tuesday's weakness in chip stocks accompanied wide declines on Wall Street, with the Nasdaq dropping 3.3% and the S&P 500 down 2.1%. Investors mostly expect the Federal Reserve to cut interest rates by 25 basis points in its Sept. 18 policy announcement, according to CME's FedWatch Tool. However, minority expectations of a 50 basis point cut rose to 37% from 30% after data on Tuesday signaled activity in the manufacturing sector remains soft. Investors will get a host of data on the labor market this week, culminating in Friday's key government payrolls report. "There's concern about what the job numbers are going to show, about seasonality," warned Steve Sosnick, a market strategist at Interactive Brokers. The chip index is now up 14% in 2024, just under the S&P 500's 16% gain. Nvidia's record one-session loss in stock market value was greater than the $232 billion decline suffered by Facebook-owner Meta Platforms on Feb. 3, 2022, when the social media company issued a dismal forecast, according to LSEG data. Following Nvidia's quarterly report last week, the mean analyst estimate for annual net income through January 2025 has climbed to $70.35 billion from about $68 billion ahead of last week's report. Those increased earnings estimates, combined with Nvidia's share losses, have the chipmaker now trading at 34 times expected earnings, down from over 40 in June and in line with its two-year average. Broadcom, another chipmaker that has benefited from the boom in AI computing, fell 6.2% ahead of its quarterly report on Thursday. (Reporting by Noel Randewich; editing by Jonathan Oatis and Bill Berkrot)

Nvidia suffers record $279 billion loss in market value as Wall St drops

The latest jitters about AI come after Nvidia last Wednesday gave a quarterly forecast that failed to meet the lofty expectations of investors who have driven a dizzying rally in its stock. "Such a massive amount of money has gone to tech and semiconductors in the last 12 months that the trade is completely skewed," said Todd Sohn, an ETF strategist at Strategas Securities. Intel dropped nearly 9% after Reuters reported CEO Pat Gelsinger and key executives are expected to present a plan to the company's board of directors to slice off unnecessary businesses and revamp capital spending at the struggling chipmaker. Worries about slow payoffs from hefty AI investments have dogged Wall Street's most valuable companies in recent weeks, with shares of Microsoft and Alphabet trading lower following their quarterly reports in July. "Some recent research has questioned if the revenues from AI alone will eventually justify this wave of capital spending on it. When assessing AI capex by individual companies, investors must consider if they are making the best use of their balance sheets and capital," BlackRock strategists wrote in a client note on Tuesday. At its July record high close, Nvidia had almost tripled in 2024. Its recent losses leave it up 118% year to date. Tuesday's weakness in chip stocks accompanied wide declines on Wall Street, with the Nasdaq dropping 3.3% and the S&P 500 down 2.1%. Investors mostly expect the Federal Reserve to cut interest rates by 25 basis points in its Sept. 18 policy announcement, according to CME's FedWatch Tool. However, minority expectations of a 50 basis point cut rose to 37% from 30% after data on Tuesday signaled activity in the manufacturing sector remains soft. Investors will get a host of data on the labor market this week, culminating in Friday's key government payrolls report. "There's concern about what the job numbers are going to show, about seasonality," warned Steve Sosnick, a market strategist at Interactive Brokers. Nvidia's record one-session loss in stock market value was greater than the $232 billion decline suffered by Facebook-owner Meta Platforms on Feb. 3, 2022, when the social media company issued a dismal forecast, according to LSEG data. Following Nvidia's quarterly report last week, the mean analyst estimate for annual net income through January 2025 has climbed to $70.35 billion from about $68 billion ahead of last week's report. Those increased earnings estimates, combined with Nvidia's share losses, have the chipmaker now trading at 34 times expected earnings, down from over 40 in June and in line with its two-year average. Broadcom, another chipmaker that has benefited from the boom in AI computing, fell 6.2% ahead of its quarterly report on Thursday. (Reporting by Noel Randewich; editing by Jonathan Oatis and Bill Berkrot)

Nvidia suffers record $279 billion loss in market value as Wall Street drops

Shares of AI heavyweight Nvidia tumbled 9.5% on Tuesday in the deepest ever single-day decline in market value for a U.S. company, as investors softened their optimism about artificial intelligence in a broad market selloff following tepid economic data. Nvidia lost $279 billion in market capitalisation, a major indication that investors are becoming more cautious about emerging AI technology that has fueled much of this year's stock market gains. The PHLX chip index plummeted 7.75%, its biggest one-day drop since 2020. The latest jitters about AI come after Nvidia last Wednesday gave a quarterly forecast that failed to meet the lofty expectations of investors who have driven a dizzying rally in its stock. "Such a massive amount of money has gone to tech and semiconductors in the last 12 months that the trade is completely skewed," said Todd Sohn, an ETF strategist at Strategas Securities. Intel CEO to pitch board on plans to shed assets, cut costs, source says Intel dropped nearly 9% after Reuters reported CEO Pat Gelsinger and key executives are expected to present a plan to the company's board of directors to slice off unnecessary businesses and revamp capital spending at the struggling chipmaker. Worries about slow payoffs from hefty AI investments have dogged Wall Street's most valuable companies in recent weeks, with shares of Microsoft and Alphabet trading lower following their quarterly reports in July. "Some recent research has questioned if the revenues from AI alone will eventually justify this wave of capital spending on it. When assessing AI capex by individual companies, investors must consider if they are making the best use of their balance sheets and capital," BlackRock strategists wrote in a client note on Tuesday. At its July record high close, Nvidia had almost tripled in 2024. Its recent losses leave it up 118% year to date. Tuesday's weakness in chip stocks accompanied wide declines on Wall Street, with the Nasdaq dropping 3.3% and the S&P 500 down 2.1%. Investors mostly expect the Federal Reserve to cut interest rates by 25 basis points in its Sept. 18 policy announcement, according to CME's FedWatch Tool. However, minority expectations of a 50 basis point cut rose to 37% from 30% after data on Tuesday signalled activity in the manufacturing sector remains soft. Investors will get a host of data on the labor market this week, culminating in Friday's key government payrolls report. "There's concern about what the job numbers are going to show, about seasonality," warned Steve Sosnick, a market strategist at Interactive Brokers. Nvidia stock slips even after earnings top Wall Street estimates and demand for AI chips surge The chip index is now up 14% in 2024, just under the S&P 500's 16% gain. Nvidia's record one-session loss in stock market value was greater than the $232 billion decline suffered by Facebook-owner Meta Platforms on Feb. 3, 2022, when the social media company issued a dismal forecast, according to LSEG data. Following Nvidia's quarterly report last week, the mean analyst estimate for annual net income through January 2025 has climbed to $70.35 billion from about $68 billion ahead of last week's report. Those increased earnings estimates, combined with Nvidia's share losses, have the chipmaker now trading at 34 times expected earnings, down from over 40 in June and in line with its two-year average. Broadcom, another chipmaker that has benefited from the boom in AI computing, fell 6.2% ahead of its quarterly report on Thursday. Read Comments

Nvidia's record $279 billion selloff shakes global markets | bobsguide

Global markets were rocked on Wednesday following Nvidia's historic $279 billion loss in market value, marking the largest single-day decline ever for a U.S. company. The drop has sparked widespread investor concerns about the tech sector and the sustainability of AI investments. Nvidia shares plunged 9.5% on Tuesday, leading to a sharp selloff in tech stocks worldwide. "Such a massive amount of money has gone to tech and semiconductors in the last 12 months that the trade is completely skewed," said Todd Sohn, ETF strategist at Strategas Securities. The drop was part of a broader market selloff prompted by tepid economic data and renewed fears of a global slowdown. The repercussions were felt globally. European shares, represented by the STOXX index, shed 1%, with major markets in London and Frankfurt falling around 0.7%. The semiconductor sector took a significant hit, with ASML Holdings dropping 5.3%. In Asia, markets in Tokyo and Taipei led the declines, each falling over 3%, while tech stocks like Japan's Advantest and Taiwan's TSMC plummeted, with Advantest down 7.7% and TSMC over 5% lower. "There was plenty of blame to go around. Nvidia. Tech. Soft spots in U.S. data. China gloom," noted Vishnu Varathan, head of macro research for Asia ex-Japan at Mizuho Bank. Nvidia's dramatic selloff and growing scepticism about AI have cast a shadow over the sector, prompting a reassessment of high-flying tech stocks. Nvidia's fall has intensified doubts about the returns on hefty AI investments that have driven much of this year's market rally. BlackRock strategists pointed out, "Some recent research has questioned if the revenues from AI alone will eventually justify this wave of capital spending on it." The cautious sentiment has spread to other tech giants, with shares of Microsoft and Alphabet also trading lower in recent months following their quarterly reports. Worries about slow payoffs from hefty AI investments have dogged Wall Street's most valuable companies, reflecting broader concerns over tech sector valuations. Adding to the market turmoil, weak U.S. manufacturing data and fears of a broader economic slowdown have stoked investor anxiety. Oil prices fell to their lowest levels since December, with Brent crude futures down over 1% to $72.86 a barrel, reflecting concerns over reduced global fuel demand amid sluggish growth in China, the world's largest oil importer. "Volatility obviously is picking up," said Jason Teh, chief investment officer at Vertium Asset Management. "We had a first taste of it at the beginning of August... last night we had this macro catalyst (and) the market's worried about further economic slowdown. Markets are now focused on upcoming U.S. economic data, including job openings, jobless claims, and the critical nonfarm payrolls report due Friday. These figures could sway the Federal Reserve's decision on interest rates, with speculation ranging between a standard 25 basis point cut and a more aggressive 50 basis point reduction. "There's concern about what the job numbers are going to show, about seasonality," warned Steve Sosnick, a market strategist at Interactive Brokers. Despite Nvidia's sharp decline, its stock remains up 118% year-to-date. At its peak in July, Nvidia's shares had almost tripled in value for 2024, driven by high expectations for its role in powering the next wave of AI technology. However, the recent downturn has adjusted its valuation metrics. Following Nvidia's quarterly report last week, the mean analyst estimate for annual net income through January 2025 has climbed to $70.35 billion from about $68 billion prior to the report. These increased earnings estimates, combined with Nvidia's share losses, have brought the chipmaker's trading multiple down to 34 times expected earnings, from over 40 times in June, aligning it more closely with its two-year average. Nvidia's record-breaking market value loss has sent ripples through global markets, highlighting deepening concerns about the tech sector, AI investments, and broader economic stability. As volatility picks up, investors are bracing for more uncertainty, navigating a landscape marked by high stakes and shifting sentiment. The coming weeks, with critical economic data releases and Federal Reserve decisions, will likely set the tone for the remainder of the year.

$279 bln wipeout: Nvidia rocks techs with record stock slide

STORY: $279 billion was the value wiped off Nvidia stock on Tuesday. That's a record one-day loss for any U.S. firm. Shares in the company tumbled 9.5% as investors cooled their enthusiasm for AI. The doubts had set in last week, when Nvidia's outlook for the coming months failed to meet lofty expectations. Sentiment wasn't helped by reports Tuesday that the firm has been subpoenaed by the Department of Justice. Bloomberg says that's over possible antitrust violations. The broader worries over AI have also sapped shares in big players like Microsoft and Google-parent Alphabet. Investors have started to ask when they will see a payoff from their huge spending on the technology. Meanwhile, chipmaker Intel also plunged Tuesday, down 9%. That followed a Reuters report that it plans a big shakeup over concerns it's lagging rivals on AI. Overall, the U.S. chip stocks index fell close to 8%, marking its worst one-day fall since 2020. The worries over techs then rolled on into Asian trade on Wednesday. In Japan, chip-gear firms Tokyo Electron and Advantest were both down around 7% by late morning. South Korean chipmaker SK Hynix saw a similar decline. Those losses drove benchmark indexes lower around the region.

Nvidia just recorded the biggest single-day wipeout by a US company

This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in. A metric for manufacturing jobs, released on Tuesday, shrank for the third consecutive month, and both major indices took a hit. There's also bearish sentiment about a US employment employment report later this week. In just two weeks, analysts expect the Fed to announce interest rate cuts, which could be larger than they first expected, sending omens about the chances of a recession. At a company level, one strategist flagged that Nvidia is flashing a big "sell" sign to investors. Bill Blain, the founder of Wind Shift Capital and a longtime financial strategist, wrote in a note on Tuesday that Nvidia's soaring valuation has made many of its employees very wealthy. Citing numbers from a recent poll, Blain said that leaves less than a third of Nvidia's staff with "any real daily financial pressure upon them," which should make investors question their motivation and Nvidia's productivity. There were also renewed warnings about AI spending and how it will take time to materialize into results for investors. Michael Cembalest, the chairman of market and investment strategy at JPMorgan Asset Management, said investors are looking past GPU sales and focusing on whether the tech giants on Nvidia's customer list can make money from the hundreds of billions they have spent on AI. Blackrock echoed a similar sentiment: Investors are debating whether the dollars in spending will show up in future bottom lines, and how many years it will take. These concerns explain why Nvidia was not the only chipmaker that took a hit on Tuesday. Intel fell 8.8%, AMD dropped 7.8%, and Qualcomm fell almost 7%. An overall chip index -- VanEck Semiconductor -- was down 7.5%. Nvidia's stock fell 2.4% after hours after the US Department of Justice subpoenaed the company as part of a probe into whether it violated antitrust laws. Nvidia's massive valuation drop comes more than two years after Meta lost $237 billion in market value in a single day in February 2022. Apple, which held the record before that, lost $180 billion in one day in September 2020. The 2022 rout was Meta's second time on the chart. In July 2018, the company shed $119 billion in market cap in a single day after reporting slowing growth in its second-quarter earnings. It was the largest one-day market cap slump at the time.

Nvidia drops $279 billion in market capitalization in largest single-day loss - Times of India

Nvidia recorded a $279 billion loss in market value as investors softened their optimism about artificial intelligence (AI) amidst a widespread market downturn triggered by tepid economic data, reports Reuters. Shares of the AI chip maker plummeted 9.5% marking the largest single-day market value drop ever recorded for a US company. The latest jitters about AI come after Nvidia gave a quarterly forecast that failed to meet the lofty expectations of investors who have driven a dizzying rally in its stock, the report says. It quotes Todd Sohn, an ETF strategist at Strategas Securities who said "Such a massive amount of money has gone to tech and semiconductors in the last 12 months that the trade is completely skewed." "Some recent research has questioned if the revenues from AI alone will eventually justify this wave of capital spending on it.When assessing AI capex by individual companies, investors must consider if they are making the best use of their balance sheets and capital," BlackRock strategists wrote in a client note on Tuesday. Slow payoffs from AI worry investors Recent concerns over delayed returns on AI hefty investment have weighed on Wall Street's top-tier companies, leading to declines in Microsoft and Alphabet shares following their July earnings releases. Nvidia gets subpoena from US DoJ In a related news, the US Department of Justice has reportedly sent a subpoena to Nvidia as it deepens its probe into the AI heavyweight's antitrust practices. According to a Bloomberg report, the officials are concerned that the chipmaker is making it harder to switch to other suppliers and penalizes buyers that do not exclusively use its artificial intelligence chips. 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.

Nvidia Market Cap Drop Sets Record as Tech Stocks Fall - Decrypt

The first trading day of September was awash in red, with the technology sector hard hit. Once high-flying Nvidia (NVDA) led the losses, although Apple, Microsoft, and Google were also down for the day. Nvidia (NVDA) suffered the most during the Tuesday bloodbath, with its stock plunging 9.53% to $108 from its open at $116.02. The drop brought a massive contraction in the company's total market cap. The $270 billion fall from $2.92 trillion to $2.65 trillion was "the biggest one-day market cap decline on record for any U.S. company," according to the Wall Street Journal. The news got worse shortly after the markets closed, as Bloomberg reported that Nvidia was served with a subpoena from the U.S. Department of Justice as it investigates possible antitrust violations. NVDA is now trading even lower after hours, according to Google Finance. In August, after Nvidia posted its second-quarter earnings report, the stock price fell 6% in after-hours trading to $125.61 per share. Other top tech stocks also closed the day in the red. Despite rumors of a future shift toward consumer robotics ahead of its next iPhone-focused event next week, Apple (AAPL) was also down Tuesday 2.72%, trading at $222.77. AAPL started the day trading at $229.00 before dropping to $221, although it has risen in after-hours trading. Apple currently has a market capitalization of $3.39 trillion, and it is currently the largest company by that metric. Microsoft (MSFT) was down 1.85% for the day. Microsoft began the day trading at $415.40, and over the day, its stock price peaked at $419.80 before closing at $409.44. The company currently has a market cap of $3.04 trillion. In August, Microsoft announced a deal with defense contractor Palantir to bring its AI technology to U.S. defense and intelligence agencies. Google has invested heavily in artificial intelligence, adding the emerging technology to almost every facet of its consumer-facing offerings. Despite this intensified focus on generative AI, Google's parent company, Alphabet (GOOGL), is down 3.68% on the day, falling from its opening price of $163.33 to close at $157.65. Its market cap stands at $1.95 trillion.