Nvidia Stock Plummets Amid AI Sector Concerns

Nvidia experienced a historic one-day loss of $279 billion in market value, representing a 9.5% drop in share price, primarily driven by a disappointing financial outlook and concerns about overvaluation in the AI sector. This decline far surpassed the previous record set by Meta in 2022. The market reaction also impacted broader indexes, with the S&P 500, Nasdaq Composite, and Philadelphia Semiconductor Index all experiencing declines. Contributing to Nvidia's woes was a subpoena from the US Department of Justice as part of an antitrust investigation. The tech sector as a whole saw significant volatility, with other companies like Microsoft, Meta, and Intel also experiencing share price drops. Despite a brief rebound, Nvidia’s stock remains under pressure, reflecting broader market uncertainties about AI investments and economic slowdown fears.