Nvidia (NVDA) stock briefly extended its decline on Friday as the AI chip giant’s market cap losses from its record high in January reached $1 trillion.
A broader market sell-off coupled with fears of an overvaluation in the AI trade has sent the stock tumbling more than 23% over the past two months.
On Friday shares temporarily fell to hover near $107 each, down from their record close of $149.43 on Jan. 6, when the company’s valuation sat just north of $3.66 trillion.
Nvidia’s market cap stood at $2.6 trillion during Friday’s session as selling on Wall Street intensified.
On Thursday renewed fears of an overextended AI trade surfaced after chipmaker Marvell Technology’s (MRVL) revenue outlook failed to impress investors and semiconductor stocks fell.
“It’s been a rough year for NVDA so far. … The stock (along with many of its AI-semi peers) has suffered, battered by a storm of growth fears, supply chain noise, and tariff and regulatory risks,” Bernstein analyst Stacy Rasgon wrote in a note to investors earlier this week. “Sentiment has clearly pivoted for now on the AI group.”
Read more: How does Nvidia make money?
Tech stocks have led a broader market sell-off recently as investors weigh the impact of the Trump administration’s tariff policy on the economy.
In late February Nvidia stock fell 8.5% in one session, sending the company’s market cap below $3 trillion after the company’s fourth quarter earnings topped Wall Street’s expectations but its outlook for first quarter gross margin came in lower than estimates.
The stock also took a hit in late January after a new AI model released by Chinese firm DeepSeek called into question the mammoth spending from Big Tech on artificial intelligence infrastructure.
Nvidia fell 17% in a single day on the news, shaving $589 billion off the AI chipmaker’s market cap — the largest single-day loss in stock market history.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
Click here for in-depth analysis of the latest stock market news and events moving stock prices
Read the latest financial and business news from Yahoo Finance
