Nvidia Plunges Almost 10%

September is traditionally one of the weaker months of the year for stocks, and upcoming election headlines and uncertainties could add to short-term market volatility.

The S&P 500 dropped more than 2%, erasing nearly 1 trillion in market value.

Nvidia was the biggest loser as it dropped 9.5% in trading hours before extending its losses further in the after-hours.

Source: Zerohedge

CEO, Jensen Huang, also saw his personal fortune take a significant hit, dropping by $10 billion, contributing to one of the largest wealth declines on record.

What caused the selloff?

AI Warnings from both Blackrock and JP Morgan sparked a broader market downturn, led by Tech.

Nvidia faced additional pressure after the U.S. Department of Justice issued subpoenas to the company as part of an antitrust investigation. Officials are concerned that Nvidia’s business practices might make it difficult for customers to switch to other suppliers, potentially punishing those who don’t exclusively use its AI chips.

Still, Nvidia’s stock has still more than doubled this year, thanks to surging sales in its data center business, which accounts for nearly 90% of the California-based company’s revenue.

Jensen Huang’s company is poised to earn more profit this year than the total revenue of its rival AMD.

Lastly, it should not be lost that U.S. stocks entered the week just a hair below all-time high.

Market corrections are normal and a necessary part of a healthy market cycle.

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