Nvidia posts worst daily drop, lost $550 billion

Nvidia’s market worth dropped by more than $500 billion following an almost 7% drop in its shares on Monday since it momentarily overtook Apple as the most valuable business in the world last week. The market valuation of Nvidia fell to $2.9 trillion, from its peak on Thursday, a decrease of almost $550 billion. The business overtook Apple and Microsoft earlier last week to take the top spot as the world’s most valuable publicly traded corporation, but it has now dropped back to third.

The Nvidia stock is falling fast

Nvidia is presently down around 16% from its intraday high of $140.76 last Thursday. Nvidia’s gains alone accounted for nearly a third of the S&P 500’s growth in 2024.
Nvidia’s influence on the whole index has grown by about 140% in 2024, raising concerns about its hold on the market. Some analysts have warned that a significant sell-off for the chipmaker might trigger a general market decline.

The drop on Monday comes after news on Friday that Jensen Huang, the chipmaker’s co-founder and chief executive, sold over $95 million worth of shares in the days leading up to and including its rise to the top of the global valuation index. According to documents, the trades were part of a previously planned Rule 10b5-1 sale plan that was put up in March.

Additionally, the company benefited greatly from a spike in sales of its graphics cards in 2020 due to the rush to mine Bitcoin. The rise in prominence of Jensen Huang, the company’s boss, has coincided with the growth of the tech powerhouse. The 61-year-old electrical engineer—well-known for donning a leather jacket—has been dubbed the “Taylor Swift of tech” by Meta CEO Mark Zuckerberg. His popularity in his home in Taiwan, where fans treat him like a rock star by posing for pictures and even asking him to autograph body parts, has contributed to his rise to fame.

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Olumide Adesina
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
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