Nvidia (NASDAQ: NVDA), the first company to hit a $5 trillion market capitalization, has seen nearly $500 billion erased from its overall value this week.
Nvidia’s market cap sat at $4.94 trillion on Monday, November 3, and since then, it has dropped to $4.45 trillion at the time of writing, Friday, November 7.
The chipmaker’s shares have been on a steady decline since Monday, and the price is now down nearly 13% on the five-day chart, trading at $181.19 at press time.
Investor sentiment was dampened by a number of factors, including weaker labor data and valuation concerns in the artificial intelligence (AI) sector, which also led to Palantir (NASDAQ: PLTR) erasing $42 billion from its own market cap in less than 24 hours.
Further pressure was added by Michael Burry’s $1 trillion short bet against Palantir and Nvidia, a move investors criticized as “dead wrong.”
Nvidia’s China operations come to a pause
Adding to market volatility, Nvidia CEO Jensen Huang said on Friday that there were “no active discussions” about selling the company’s Blackwell chips in China.
“Currently, we’re not planning to ship anything to China. It’s up to China when they would like Nvidia products to go back to serve the Chinese market. I look forward to them changing their policy,” said Huang in an interview.
The comments put an end to last week’s speculation that the U.S. President Donald Trump’s discussions with the Chinese President Xi Jinping in South Korea could end with a new deal.
Other chip stocks redacted quickly. AMD (NASDAQ: AMD), for instance, is down nearly 5%, while Broadcom (NASDAQ: AVGO) has declined 3.5% on the day.
Featured image via Shutterstock
