Big fall in Nvidia Stock, market cap reduced by as much as Warren Buffett's cash reserve in a single day
Co-founder and CEO Jensen Huang has also suffered a setback due to the fall in Nvidia Corp's shares. His wealth has declined the most so far. On Tuesday, Huang's total wealth fell by about $ 10 billion. Now it is $ 94.9 billion. Huang's net worth data is available since 2016. Earlier, his wealth had not decreased so much in a day.
Nvidia Corp.'s shares fell sharply on Tuesday. It fell 9.53% to close at $ 108.00. This has resulted in a record drop in Nvidia's market capitalization of $279 billion (Rs 23.42 lakh crore). This is almost equivalent to Warren Buffett's current cash reserves. Previously, no American company's market capitalization had dropped as much in a single day.
Many economic indicators in the US point to a recession. The craze for Artificial Intelligence (AI) also appears to be coming from the minds of investors. As a result, investors are increasingly focused on selling. Nvidia's quarterly results were quite favorable. Still, there is a fear in the minds of investors that AI stocks are now showing their full strength and they are unlikely to grow much from here.
Nvidia shares made their all-time high in July. Since then its shares have been falling continuously. This shows that investors' views on AI are changing. The PHLX Semiconductor Sector fell 7.75%. This is the biggest one-day decline since 2020. The PHLX Semiconductor Sector Index is primarily composed of the 30 largest US companies involved in the design, distribution, manufacturing, and sale of semiconductors. Intel shares also fell by about 9 percent.
Jensen Huang, co-founder and CEO of Nvidia Corp., has also suffered a setback as a result of the share price decline. His wealth has declined the most thus far. On Tuesday, Huang's total wealth fell by approximately $10 billion. The current figure is $94.9 billion. Huang's net worth information has been available since 2016. Previously, his wealth had never decreased so dramatically in one day.
US manufacturing equities remain sluggish. Unemployment has also heightened the government's concerns. However, the US central bank has attempted to boost investor morale by hinting at interest rate cuts. Investors' attention is now focused on US employment data, which will be released on Friday. The US stock market fell sharply on Tuesday. The Dow Jones Industrial Average fell 1.51 percent and the Nasdaq Composite fell 3.26 percent.
