Nvidia shares fell nearly 10% in the biggest one-day market capitalization drop in U.S. history, triggering heavy selling in big tech stocks.
The company is widely known for manufacturing Graphics Processing Units (GPUs), which are used in vehicles, robotics, gaming, cryptocurrency mining, and more.
NVIDIA also sells software used to train and run artificial intelligence algorithms, making it a specialist in chips that are unique and important for companies looking to build AI capabilities.
The AI chipmaker briefly surpassed tech giants Apple and Microsoft in market capitalization in June 2024.
NVIDIA shares lost a record $279 billion in market cap on Tuesday.
The stock price drop was triggered by Nvidia’s weaker than expected profits and concerns about its huge investments in AI, but things got even worse yesterday when Bloomberg reported that the company had received a subpoena as part of the Department of Justice’s antitrust investigation.
NVIDIA shares plummeted from a one-month high of $130 to $108 on Tuesday, and as of this morning are still trading above $109.00.
NVIDIA specializes in chips that are incredibly unique and important for companies looking to build AI capabilities.
This article originally appeared on USATNetwork: AI chipmaker giant NVIDIA’s shares plummet by historic $279 billion
