Nvidia Stock: Historic $589 Billion Market Loss Shakes Investors

Nvidia experienced an unprecedented market downturn as its stock plummeted 17%, marking the largest single-day market value loss in Wall Street history at $589 billion. The dramatic decline came amid growing concerns about the company's sustainability in the AI chip market, triggered by the emergence of cost-effective AI models from competitors. Despite this setback, the company's recent quarterly results demonstrated remarkable strength, with revenue surging 93.61% to $35.08 billion. The current stock price, while significantly impacted, remains well above its 52-week low of $60.70 recorded in early February.

Supply Chain Tensions Add to Market Pressure

Adding to investor concerns, internal sources reveal escalating tensions with key manufacturing partners who are struggling to meet Nvidia's stringent quality and volume requirements. This has prompted strategic shifts in production strategy, with significant manufacturing operations being relocated to Taiwan. The ongoing challenges have contributed to further market uncertainty, with the stock experiencing an additional 4% decline in recent trading sessions.