Last Updated on 04/09/2024 by Arun jain
Nvidia There have been two big hits in the last four working days.
First, investors punished the company Not to have high expectations When it reported earnings on September 28.
And on Tuesday, its stock fell 9.5%, valuing it at $278.9 billion — the biggest one-day loss ever by a US company.
The wipeout is linked to concerns over AI health and the US economy.
A metric for manufacturing jobs, released Tuesday, shrank for a third straight month, and Both key indices took a hit. There is also a bearish feel about the US employment report due later this week. In just two weeks, analysts expect the Fed Announce an interest rate cutWhich may be larger than they first expected, sending an omen about the possibility of a recession.
At the company level, A strategist raised the flag That Nvidia is giving investors a big “sell” signal.
Bill Blaine, founder of Wind Shift Capital and a longtime financial strategist, wrote in a note on Tuesday that Nvidia’s value soared has made many of its employees very rich. Citing recent polling figures, Blaine said fewer than a third of Nvidia’s staff leave with “any real day-to-day financial pressure on them,” which should cause investors to question their motivation and Nvidia’s productivity.
There were also renewed warnings about AI costs And how long it will take to translate into results for investors.
Michael Sembalest, chairman of market and investment strategy at JPMorgan Asset Management, said investors are looking past GPU sales and focusing on whether Nvidia’s customer list can cash in on the hundreds of billions the tech giant has spent on AI. BlackRock echoed a similar sentiment: Investors are debating whether a dollar in spending will show up on the bottom line in the future, and how many years it will take.
These concerns explain why Nvidia The chipmaker wasn’t the only one to take a hit on Tuesday. Intel fell 8.8%, AMD fell 7.8% and Qualcomm fell nearly 7%. The overall chip index – VanEck Semiconductor – was down 7.5%.
of Nvidia The stock fell 2.4% after hours After the US Department of Justice subpoenaed the company as part of an investigation It violates antitrust laws.
The massive drop in Nvidia’s valuation comes after more than two years The meta lost $237 billion in market value In a single day in February 2022. Apple, which previously held the record, lost $180 billion in a single day in September 2020.
Meta’s 2022 rout was the second time on the chart. In July 2018, the company Market cap fell by $119 billion A day after reporting slower growth in its second-quarter earnings. It was the largest one-day market cap decline at the time.
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