Nvidia loses $500 billion in value and its crown as “most valuable company”

Nvidia is on a roll thanks to artificial intelligence, which is currently the focus of the technology industry’s attention. The chipmaker’s silicon chips are among the only hardware products that offer the processing power needed to enable resource-intensive commercial AI models.

For this reason, Nvidia acted as a kind of harbinger of the AI ​​industry – its rapid rise is seen as an indicator of the extreme pace of growth of AI.

However, last week Nvidia released a big fall on the stock market and has lost around 500 billion dollars in value.

This has caused a huge stir on Wall Street, as Nvidia has been making its shareholders rich lately. On June 18, for example, Nvidia overtook both Microsoft and Apple to suddenly become the most valuable company in the world with a market capitalization of $3.34 trillion.

Now, just a week later, Nvidia is worth around $2.9 trillion and announced its most valuable company The crown went to Microsoft, which is worth $3.3 trillion. The company is now in third place behind Apple, which is also worth over $3 trillion.

Nvidia is still doing well, of course. And thanks to AI-related support from people like Elon Musk, who is reportedly building an Nvidia-based “supercomputer” through his AI company xAI, the company is still likely to bring in plenty of revenue. However, the recent drop in the stock market may show that investors are sending the message that they are not so bullish on the AI ​​industry’s monumental claims about how their technology will change the world.

As several media reported, AI companies made big promises, but so far they have very little to show when it comes to actually making meaningful changes in the industry that AI is supposedly about to revolutionize. In addition, Studies have found that AI is a huge energy and resource drain, which will surely make at least some AI supporters think about where the industry is headed.