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Powerful AI Chip Maker Loses $100 Billion in Value

Natasha Kumar By Natasha Kumar Aug29,2024

Powerful AI chipmaker loses $100 billion in value

The Silicon Valley chipmaker failed to reassure investors of further growth as production problems persist.

This was reported by the press service of The Financial Times.

Nvidia shares fell 4% on Thursday as the chipmaker's latest earnings report fell short of high market expectations. That wiped about $100 billion off the Silicon Valley company's market value, which has soared amid a boom in artificial intelligence spending.

That came despite the company's revenue more than doubling in the most recent quarter.

Nvidia shares had recovered some ground by midday, but were still trading about 3% lower than the day before. The stock is still up about 150% since the start of 2024.

In its latest results, released Wednesday, the chipmaker said it expects third-quarter revenue to be $32.5 billion, plus or minus 2%, slightly ahead of analyst consensus.

Nvidia sought to reassure investors Wednesday that it will make several billion dollars in revenue this fiscal year from the next generation of its powerful artificial intelligence chips, despite production issues.

Nvidia shares fell 7% on Tuesday, July 30, as a selloff in chip makers intensified after earnings reports from major tech companies.

By Nina Petrovich

Natasha Kumar

By Natasha Kumar

Natasha Kumar has been a reporter on the news desk since 2018. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Times Hub, Natasha Kumar worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my natasha@thetimeshub.in 1-800-268-7116

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