Nvidia Corp. has experienced a significant selloff, shedding $430 billion over three days. The stock has fallen 13% since it briefly surpassed Microsoft Corp. as the world’s most valuable company last week. This decline has put Nvidia into a technical correction — a drop of 10% or more from a recent peak — for the first time since April. On Tuesday, premarket trading indicated further losses, with shares dropping as much as 2.4%.
Despite the recent drop, Nvidia’s stock has surged this year due to strong demand for its AI chips. The stock rose 43% from its May 22 earnings report and stock split announcement to its peak on June 18, when Nvidia’s market value reached $3.34 trillion, surpassing Microsoft at $3.32 trillion. Even with the recent decline, Nvidia is still up 139% this year.
