Nvidia Faces Historic $500 Billion Loss Amid AI Competition Fears

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Shares of Nvidia, the leading chipmaker in the artificial intelligence sector, suffered a dramatic decline on Monday, marking its worst day since the global market downturn in March 2020. The tech giant's stock plummeted by as much as 18%, resulting in a staggering loss of over $520 billion in market value and pushing its overall valuation below $3 trillion.

This sharp decline was primarily driven by concerns over America's competitive edge in AI, triggered by breakthroughs announced by a Chinese artificial intelligence startup. Despite the recent sell-off, Nvidia's stock has still surged by more than 480% over the past two years.

With Monday's market drop, Nvidia's market value decreased to approximately $2.8 trillion, a significant reduction from its peak of $3.7 trillion, causing Apple to reclaim its title as the world's most valuable company. The losses also had a wider impact, dragging down the Dow Jones Industrial Average by more than 130 points and contributing to a 3% decline in the Nasdaq Composite.

The scale of Nvidia's loss stands out in the financial landscape, exceeding the entire market capitalization of major firms like Exxon Mobil and Bank of America. As the tech sector grapples with this turmoil, Nvidia's recent drop reinforces the volatile nature of the market landscape fueled by advancements in artificial intelligence.

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