Nvidia shed $128 billion in market cap on Friday, the largest drop on record for the company.
Nvidia helped push the S&P 500 to a new record close Thursday.
Shares of the semiconductor maker fell 5.6% to $875.28 on Friday, erasing gains it had notched earlier in the session. It was the largest percentage decrease for shares since May 31, 2023, when they fell 5.7%. The drop comes a day after Nvidia helped push the S&P 500 to a new closing high.
Friday’s performance snaps a six-day winning streak for Nvidia stock and pauses a spectacular run that has seen shares quadruple in value over the past 12 months.
Nvidia’s market value now stands at $2.188 trillion. The company ended Thursday at $2.317 trillion.
Wedbush Securities analyst Matthew Bryson, who rates Nvidia as a Buy, told Barron’s that Nvidia’s fall came as chip names dropped across the board. “It’s broader than Nvidia,” he said.
Broadcom managed to beat earnings expectations Thursday, but shares nevertheless fell after investors were disappointed with the outlook. Broadcom closed down 7%. The stock his up 17% this year.
Marvell Technology also presented a weaker-than-expected outlook on Thursday after fourth-quarter earnings matched Wall Street estimates. Marvell shares fell 11%.
Advanced Micro Devices declined 1.9%, while Intel dropped 4.7%.
Nvidia shares have risen 76% this year. That compares with a 7.4% jump in the S&P 500 and an increase of 7.2% for the Nasdaq Composite.