After September 3 saw Nvidia (NASDAQ: NVDA) stock erase $279 billion in a single trading session, with mounting problems such as a subpoena by the Department of Justice (DoJ), NVDA shares seem headed for more trouble.
In one of the most significant declines in the stock market since August 5, the September 3 trading session saw it erase over $1 trillion in value in a single trading session, with the semiconductor sector, which is vital for artificial intelligence (AI) rally being one of the worst hit.
As troubles for Nvidia (NASDAQ: NVDA) continue, exacerbated by the recent United States Department of Justice subpoena as part of its investigation into alleged antitrust practices, a renowned trading expert has recently said he would not be buying Nvidia stock as he views it as a “debt-driven bubble.”
Nvidia's Jensen Huang fell out of the $100 billion club on Tuesday. The chipmaker's stock plunge slashed Huang's net worth by about $10 billion to below $95 billion.
A few billionaires started to sell the stock in Q2. Nvidia's growth is still incredibly strong.
The fall suggests worries are growing about frothy valuations for companies dependent on AI investment.
As the United States Department of Justice served Nvidia (NASDAQ: NVDA) with a subpoena as part of its probe into the semiconductor manufacturer's alleged antitrust practices that make it difficult for buyers to switch to other suppliers, it had an expected impact on NVDA stocks.
As the United States Department of Justice served Nvidia (NASDAQ: NVDA) with a subpoena as part of its probe into the semiconductor manufacturer's alleged antitrust practices that make it difficult for buyers to switch to other suppliers, it had an expected impact on NVDA stocks.
Nvidia on Tuesday defended its tactics in the hot market for chips to power artificial intelligence in the face of reports the US is probing whether it abused its clout.
Nvidia has been on a roll, reporting record earnings quarter after quarter as customers scoop up its artificial intelligence (AI) chips. Nvidia stock has soared about 2,500% over the past five years.
Fall overnight comes after it shrinks by $279bn on Tuesday in biggest one-day drop in value by US company
Tech tumble delivers sharp falls for Asia bourses