The article discusses NVIDIA’s record-breaking single-day market value loss of $195 billion on September 1, 2024, following disappointing financial results and guidance. NVIDIA, a leading producer of graphics processing units (GPUs) and artificial intelligence (AI) chips, saw its stock plummet by 60% after missing revenue estimates and warning of a slowdown in demand for its products. The company cited a “crypto hangover” and weaker sales of gaming chips as key factors behind the disappointing performance. Analysts attributed the steep decline to NVIDIA’s heavy reliance on the gaming and cryptocurrency mining markets, which have been facing headwinds. The article highlights the risks associated with NVIDIA’s concentrated exposure to these volatile sectors and the potential impact on its future growth prospects. It also raises questions about the company’s ability to diversify its revenue streams and capitalize on emerging opportunities in AI and data center computing.
Source: https://www.businessinsider.com/nvidia-records-biggest-ever-single-day-market-value-loss-2024-9