Nvidia shares plunge nearly 10% in largest single-day value loss for a US firm

Shares in US chip maker Nvidia plunged nearly 10% on Tuesday, wiping nearly 300 billion dollars (£228 billion) off the firm’s value in the largest single-day value drop in US stock market history.

The technology giant has seen its value soar over the last year, more than doubling in that time, as it rode the wave of excitement around artificial intelligence and the firm’s central role in powering that technology.

It has seen its value rise by 150% this year alone, following only Microsoft and Apple in breaching the three trillion dollar (£2.28 trillion) valuation mark.

But on Tuesday, the firm’s value fell by 9.5%, wiping 279 billion dollars (£212 billion) off its market valuation after US manufacturing figures fell below expectations, leaving investors nervous about the overall state of the economy, with US job figures coming on Friday and a decision on interest rates in the country due next week.

UK and Asian markets also dipped on Wednesday after the US slowdown, which also hit other chip makers and tech giants.

Nvidia’s share price may also have been affected by news that the US department of justice has issued a subpoena to the firm, requiring it to give evidence over anti-trust issues.

Despite reporting record quarterly revenue of 30 billion dollars just last week, Nvidia had hinted that its rapid growth was beginning to slow, with the firm’s forecast growth for the next three months still going up, but at a slower pace than over the last year, leading some market watchers to suggest the hype around AI was beginning to calm.