Nvidia experienced an extraordinary drop in its stock value, losing a staggering $279 billion in a single day. This is the largest one-day loss ever recorded in United States stock market history. The massive decline exceeds the total market value of major companies such as McDonald’s and Chevron. Nvidia’s stock dropped $279 billion in one day, causing CEO Jensen Huang to lose $10 billion. DOJ subpoena adds to the turmoil.
Subpoena and Stock Decline
Nvidia’s shares fell more than 9% during regular U.S. trading hours and continued to drop by another 2% after the market closed. The decline followed news of a subpoena from the Department of Justice (DOJ), which is investigating Nvidia for potential antitrust violations. The DOJ’s inquiry has significantly impacted investor confidence, causing the sharp drop in Nvidia’s stock price.
Jensen Huang $10 Billion Loss
Jensen Huang, Nvidia’s CEO and the company’s largest individual shareholder, also suffered a substantial personal financial loss. His wealth decreased by $10 billion due to the plummet in Nvidia’s stock price. Despite the significant drop, Nvidia’s stock showed some recovery, rising about 1% by Wednesday afternoon.
Nvidia’s Market Position and Response
Nvidia holds a dominant position in the AI chip market, controlling about 80% of the sector. In response to the DOJ investigation, Nvidia issued a statement defending its business practices. A company spokesperson emphasized that Nvidia’s success is based on merit, as demonstrated by their benchmark results and the value they provide to customers. The spokesperson highlighted that customers have the freedom to choose the solutions that best meet their needs.
Year-to-Date Performance
Despite the recent losses, Nvidia’s stock is still performing well overall. The company’s shares are up by 118% so far this year, according to Reuters. This positive year-to-date performance indicates that the company continues to be a strong player in the technology sector, despite the current challenges.
