Nvidia shares fell 8.5%, pushing the company’s market cap below $3 trillion

The stock market reaction to the release of quarterly and annual reports caused a $273 billion decline in Nvidia’s market cap, leaving the issuer behind on the list of companies with a market cap of over $3 trillion, leaving only Apple. Many large tech companies also saw their stocks fall.

Image source: NVIDIA

Nvidia shares were unable to maintain their previous levels due to higher revenues than the market had expected, nor the company’s CEO’s assurances that demand for Blackwell accelerators would remain “surprisingly” high and that problems with their mass production would be resolved. The company expects to increase revenues by 65% ​​at most in the current quarter, which is significantly less than the growth in the same period last year. Revenue growth is slowing down, and this has become the main reason for investor disappointment. In addition, Nvidia’s profit margins are currently declining under pressure from high costs of bringing new-generation products to market.

Nvidia shares have lost about 10% in value since the start of the year, as concerns about the impact of sanctions on China, US tariff policy, and DeepSeek’s success in creating productive language models on a limited set of hardware resources have affected their price. In any case, even at current levels, Nvidia’s market capitalization is five times higher than it was two years ago.

The correction was not limited to the American stock market, Bloomberg noted that the stock prices of 25 Japanese semiconductor companies fell by an average of 4.5%. Shares of South Korean SK hynix and Samsung Electronics fell by 4.8 and 2.3%, respectively. At the same time, in the US, the Nasdaq-100 index, just six days after reaching a new historical maximum, fell by 7.5% after the publication of Nvidia’s report. It has not fallen by more than 5% in a day since September 2020.