Chipmaker Nvidia’s (NVDA) market capitalization has fallen below $3 trillion U.S. following an 8% decline in the company’s stock after its latest financial results were made public.
Consumer electronics giant Apple (AAPL) is now the only company that has a market capitalization greater than $3 trillion U.S.
Nvidia’s shares fell nearly 10% the day after it delivered financial results for the final quarter of 2024, bringing its year-to-date decline to 13% and dropping its market cap to $2.94 trillion U.S.
The selloff in Nvidia’s stock occurred despite the company reporting results that beat Wall Street forecasts across the board, including a 78% year-over-year rise in its sales and an 80% increase in its profits.
The company’s data centre revenue, which includes its microchips that power artificial intelligence (A.I.) workloads, soared 93% on an annual basis to nearly $36 billion U.S.
Nvidia also signaled that production issues for its next-generation Blackwell microchip have been resolved.
Unfortunately, the strong print hasn’t allayed investor concerns about export controls, tariffs, and more efficient artificial intelligence (A.I.) models out of China.
However, despite the current drawdown, Nvidia is still worth five times more than it was two years ago at the start of the A.I. market boom.
The company’s market cap first hit $3 trillion U.S. in June 2024.
Nvidia remains the second most valuable U.S. publicly listed company behind Apple and ahead of Microsoft (MSFT).
The stock of Nvidia has gained 55% over the last 12 months to trade at $120.15 U.S. per share.
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