Nvidia, a powerhouse in the tech industry, experienced a record-breaking drop in its stock value on Tuesday. In a single day, the company lost a staggering $279 billion in market capitalization, marking the largest one-day decline in U.S. history. To put this into perspective, this loss is greater than the total market value of many major U.S. corporations such as McDonald’s and Chevron, as reported by CNN.
The dramatic decline in Nvidia’s shares began with a more than 9% plunge during regular U.S. trading hours. The downward spiral continued after-hours, with an additional 2% drop following news of a subpoena from the Department of Justice related to an antitrust investigation, according to Bloomberg.
Even Jensen Huang, the CEO and top individual shareholder of Nvidia, felt the impact of this massive decline, with his personal wealth taking a hit of $10 billion.
Nvidia CEO Jensen Huang – Photo by I-HWA CHENG/AFP | Getty Images
Despite the turmoil, Nvidia’s shares saw a slight recovery of about 1% on Wednesday afternoon, as reported by CNBC.
Nvidia currently dominates approximately 80% of the market for AI chips. In response to the antitrust investigation by the DOJ, a company spokesperson emphasized Nvidia’s commitment to fair competition, stating that the company excels based on merit, as evidenced by benchmark results and the value provided to customers.
While the recent losses have been substantial, Nvidia’s stock is still showing an impressive 118% increase year-to-date, based on information from Reuters.
Related: Learn more about the fascinating world of millionaire Nvidia employees and their dedication to pushing boundaries even in the late hours of the night.