Nvidia's US$279 billion market cap plunge marks the largest single-day loss in U.S. stock market history, surpassing the previous record held by Meta.
Global semiconductor stocks, particularly in Asia and Europe, tumble as Nvidia's downturn ripples through the industry.
By Falito Villienuve Tandra, Salma Farah Faiza, and Iman Satyo Adi
September 6, 2024 at 16:30 GMT+7
Nvidia's shares plummeted by over 9% in regular trading, sparking a widespread sell-off across the semiconductor sector and causing ripples throughout global markets. The dramatic drop followed the release of United States economic data that reignited concerns about the health of the economy, leading to heightened market jitters.
The downturn was further exacerbated by reports that Nvidia received a subpoena from the Department of Justice as part of an ongoing antitrust investigation, fueling investor anxiety. As a result, Nvidia's share price continued to decline in post-market trading, falling an additional 1.5%.
The sharp decrease in Nvidia's stock value had an immediate and far-reaching impact, dragging down semiconductor stocks in Asia and Europe, reflecting the deep interconnectedness of the global tech industry.
Nvidia corporate headquarters in Santa Clara, California | Source: NVIDIA/Handout via REUTERS/File Photo
Nvidia's US$279 billion market cap decline stands as a record-breaking event in U.S. stock market history, eclipsing the previous high set by Meta's US$232 billion loss in February 2022. This historic drop underscores the extreme susceptibility of even the largest and most influential tech giants to market fluctuations.
Nvidia's unprecedented loss serves as a stark reminder of the volatility that can swiftly erode vast amounts of market value, even in companies at the forefront of technological innovation. The magnitude of this decline not only highlights the risks inherent in the tech sector but also signals a broader caution to investors about the unpredictable nature of the markets.
Samsung Electronics' office building in Seoul (left) and SK hynix's plant in Cheongju, North Chungcheong Province | Source: Yonhap, SK Hynix
The global semiconductor industry faced a significant setback as major Asian firms like SK Hynix, Samsung, and TSMC saw sharp declines in stock prices. SK Hynix, which supplies memory chips to Nvidia, dropped 8%, while Samsung fell 3.45%, and TSMC, which manufactures Nvidia’s high-performance GPUs, slid over 5%.
The sell-off extended to Europe, affecting semiconductor companies like ASML, ASMI, and Infineon, all of which experienced steep losses. This broad decline was triggered by a 9% plunge in Nvidia’s share price, exacerbated by concerns about the U.S. economy and an ongoing antitrust investigation.
Nvidia’s vast value chain highlights the interconnectedness of global markets, where the performance of a single company can ripple across industries, affecting both Asian and European firms alike.
Sources:
CNBC
Bloomberg
Reuters
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