Nvidia lost $430 billion, the largest market capitalization loss ever recorded in the history of the world.
Nvidia said goodbye to 430 billion dollars. It is the loss of market capitalization ever recorded in history.
Just a few days after becoming the most valuable company in the world, Nvidia experienced nothing less than a bloodbath.
The company producing technological chips used in the AI sector had seen its shares rise dramatically, a rally that demonstrated - once again - the excitement of investors for the realities linked to artificial intelligence and their important role in the medium to long term.
Last week, Nvidia surpassed Microsoft in terms of market capitalization, an event that made the company the largest and most valuable in the world. The company had reached a market capitalization of 3,400 billion dollars, while that of Microsoft had fallen to 3,320 billion dollars.
A few days later, the massacre arrives for the chip company.
In Tuesday’s session, less than a week after its rise to glory, Nvidia shares fell 6.7%.
It was the third consecutive session in the red, as well as the heaviest daily decline since April. The weight of the sell-off also dragged the NASDAQ lower.
In total, considering the last three closures approximately $430 billion of Nvidia’s value was wiped out.
According to data compiled by Bloomberg, this is the heaviest market capitalization collapse - which occurred in the space of three days - ever recorded by any company in the history of the world.
And this is how Nvidia lost its lead. Microsoft and Apple are once again gold and silver medalists in the ranking of the largest capitalization companies in the world.
At the time of writing, the company’s shares have moved a little to $125 with a market cap of $3,100 billion.
In any case, Nvidia’s rise remains unprecedented. Its shares have risen more than 190% in the last year, including 30% in the last three months alone.
Nvidia has been in business for 30 years, but until recently its name was not known to consumers. The company does not address consumers, as Apple or Microsoft do.
Nvidia CEO Jensen Huang founded the company in 1993, on its thirtieth birthday, to bring three-dimensional graphics to the gaming and multimedia market.
The Taiwanese-born tech whiz, who moved to Kentucky at age 9, invented the chip giant alongside fellow engineers Chris Malachowsky and Curtis Priem at Denny’s restaurant in San Jose, California, where he had worked part-time before graduating from Stanford University.
In recent years, Nvidia has made its way into the world of artificial intelligence with its chips and has enjoyed a meteoric rise in demand for its products.
This growth has been generated by the increase in interest in artificial intelligence and the demand for the chips needed for the computers that process it.
Demonstrating its unprecedented rise, Nvidia managed to reach a market capitalization of $1 trillion in the past year alone.
Original article published on Money.it Italy 2024-06-26 17:41:42. Original title: Questa società ha appena bruciato 430 miliardi di dollari
