At the start of trading, Nvidia saw over $100 billion (£76 billion) wiped off its market value due to concerns that the tech stock surge might be indicative of a bubble. However, fluctuations in the company’s shares quickly reduced the losses to $60 billion, reflecting ongoing uncertainty about the growth prospects of the AI industry leader.
This decline occurred despite Nvidia reporting record sales of $30 billion, surpassing analysts’ expectations and more than doubling its revenue from the same quarter last year.
Jensen Huang, the company’s founder and CEO, holds a stake valued at $106 billion, according to Bloomberg. The drop in Nvidia’s share price has resulted in a personal loss of approximately $2 billion for Huang.
Despite the recent slide, Nvidia’s stock is still up nearly 150% this year, highlighting the extent of the company’s remarkable rise.
Wedbush analyst Daniel Ives remains optimistic about tech stocks, noting that strong demand for AI-capable chips and robust financial results across the tech sector support a “firmly bullish view” for the coming year.
Ives compared the current situation to the early days of the Internet in 1995–1996 rather than the 1999 tech bubble, emphasizing that the focus should be on the AI expansion and the leading tech players of this new industrial revolution.
