NVDA: Nvidia Stock Wipes Out $230 Billion Right After Touching Record. What Happened?

Shares of the AI darling erased 6.2% as the company’s big Las Vegas event failed to spark enthusiasm among investors.

• Nvidia stock NVDA was among the biggest losers in tech on Tuesday when the whole market tanked. Frankly, the 2% loss for the Nasdaq was largely a result of Nvidia’s fall, which erased about $230 billion from the chip giant’s valuation. Shares of Nvidia tumbled 6.2% a day after the company unveiled its next-gen gaming graphics cards at the CES tech trade show in Las Vegas (and just as shares hit an intraday record).
• Besides the sweeping bearish sentiment that painted everything in red, Nvidia was also dragged lower by its CEO Jensen Huang. At the same event, he was mostly talking about the gaming stuff, saying little on the company’s plans to basically rule the world, i.e. supply chips for tech giants to train and run AI models. Jensen did note that the most advanced AI chip, Blackwell, was in full production.
• Shares of Nvidia are up about 3% this year as investors have hit the brakes on their high-speed pursuit of outsized gains in AI plays. Last year the stock nearly tripled as these same investors were unhinged in their hunt for bargains, even at the loftiest prices in history. Nvidia today boasts a market cap of roughly $3.5 trillion and is the second-largest corporation in the world, right after Apple AAPL, valued at $3.7 trillion.