When Nvidia’s stock price plummeted by 9.5% on Wednesday night, shockwaves were felt in financial markets worldwide. In a major Wall Street sell-off, the semiconductor giant shed $279 billion in value, which marked the biggest one-day market capitalization drop for a U.S. stock in history. According to Bloomberg, Nvidia shares fell by 2% on Tuesday in light of a subpoena from the Department of Justice as part of an antitrust investigation.
Nvidia’s share price plunge severely fractured its Asian partners, such as South Korean memory chip maker SK Hynix and conglomerate Samsung Electronics. SK Hynix saw share prices slump by 8%, whereas Samsung shares closed 3.45% lower. Alternatively, Japan’s SoftBank fell by 7% due to Nvidia’s Wall Street tumble. Nvidia’s most trusted partner, TSMC, saw its stock fall by 5%, and Taiwan’s Hon Hai Precision Industry (internationally recognized as Foxconn), another strategic partner in Nvidia’s elaborate ecosystem, suffered a 3% dip as Asian markets closed on Tuesday.Â
BREAKING: Nvidia stock, $NVDA, falls over 8% despite reporting stronger than expected earnings.
The company posted EPS of $0.68, above expectations of $0.65, on revenue of $30.0 billion, above expectations of $28.9 billion.
The stock has now erased $250 BILLION in market cap… pic.twitter.com/3wKayC5moQ
— The Kobeissi Letter (@KobeissiLetter) August 28, 2024
The selling spree in Asian markets was reserved for European semiconductor stocks. Nvidia’s record-breaking collapse on Wall Street surpassed the previous record set by Meta in February 2022, dictated by a $232 billion fall in value in a single day.
