Nvidia’s meteoric rise stumbled Thursday as its shares plunged more than 8%, pushing the chipmaker’s market capitalization below the $3 trillion mark and leaving Apple as the sole member of the exclusive valuation club.
The sell-off wiped out approximately $273 billion in market value, with Nvidia’s stock closing at a valuation of $2.94 trillion. The decline followed the company’s quarterly earnings report, which beat expectations but failed to impress investors amid mounting concerns over tariffs, export controls, and slowing AI growth momentum.
Despite the setback, Nvidia remains the second most valuable US tech company, trailing Apple and ahead of Microsoft, one of its largest customers.
The slump caps a rocky start to 2025, with Nvidia shares down 10% year-to-date as investors weigh the impact of geopolitical tensions and the evolving landscape of artificial intelligence. However, the company’s stock is still worth five times more than it was two years ago, when the generative AI boom began.
Nvidia reported a 78% jump in revenue to $39.33 billion, driven by a 93% surge in data center revenue, which accounts for the bulk of its AI chip sales. The company also forecast a strong start to fiscal 2026, with CEO Jensen Huang assuring that production issues surrounding its next-generation Blackwell chip have been largely resolved.
Huang remains optimistic about future demand, citing the increasing complexity of AI models that require exponentially greater computing power.
“The amount of computation necessary to do that reasoning process is 100 times more than what we used to do,” Huang told CNBC on Wednesday.
Large cloud service providers like Microsoft, Google, and Amazon accounted for about half of Nvidia’s data center revenue, underscoring the company’s reliance on hyperscale infrastructure spending to sustain its rapid growth.
