Nvidia Sheds $1T, Hits Pre-AI Boom Valuation
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- Nvidia lost approximately $1 trillion in market capitalization in under two months, returning to valuation territory last seen before the AI-driven rally took hold.
- The stock has dropped 16% from its May 14 all-time high as investors rotated into competing semiconductor makers, with money flowing especially toward memory-chip manufacturers.
- Nvidia's GPUs continue to lead the artificial intelligence data center market, leaving a gap between the company's underlying product dominance and its collapsing equity valuation.
Why it matters: The 16% slide from the May 14 peak shows the AI trade's narrow bellwether is no longer the only way to express the thesis — capital is fleeing into memory-chip rivals, meaning Nvidia's GPU market lead no longer shields the stock from rotation-driven selling.
