Nvidia suffers $279 billion loss in one day due to these factors: Explained

World’s leading artificial intelligence (AI) chipmaker Nvidia on Tuesday suffered a record loss of $279 billion or 9.5 per cent of market capitalisation, leading the broader US market selloff triggered by disappointing economic data.

This setback followed last week’s announcement that Nvidia’s third-quarterly revenue is expected to be around $32.5 billion. While this forecast was above the average analysts’ estimate of $31.9 billion, it fell short of meeting the lofty expectations (up to $37.9 billion) that had driven the stock’s unprecedented rally.