NVIDIA Shares Enter Correction Territory, Erasing $430 Billion in Value
NVIDIA shares entered correction territory on Monday, June 24, as a continued sell-off wiped out a historic amount of value for the AI-focused chipmaker. The stock dropped 6.7%, marking its third consecutive negative session and the largest one-day percentage decline since April. This three-day slump erased approximately $430 billion from NVIDIA’s market capitalization, the largest three-day value loss for any company in history, according to Bloomberg data.
Over the three-day period, the company shares fell 13%, surpassing the 10% threshold that defines a correction. The decline impacted the broader chipmaking sector, with the Philadelphia Stock Exchange Semiconductor Index falling 3% on Monday. Other major chipmakers also saw significant declines, with Broadcom falling 4%, Qualcomm dropping 5.5%, ARM Holdings slumping 5.8%, and the US-listed shares of Taiwan Semiconductor Manufacturing shedding 3.5%.
The sharp decline brought NVIDIA’s valuation below the $3 trillion mark, positioning it behind both Microsoft and Apple. Just last week, NVIDIA briefly held the title of the world’s largest stock by market capitalization.
“In the near term, it is plausible that investors begin suffering from AI fatigue or become more broadly concerned about index concentration,” said Neville Javeri, portfolio manager and head of the Empiric LT Equity team at Allspring Global Investments.
Despite the recent slump, NVIDIA remains up nearly 140% this year, making it the second-best performer among S&P 500 Index components, following Super Micro Computer, another favorite in the AI sector.
