Nvidia Loses $470 Billion in Value in a Week. Should Investors Be Worried?
The artificial intelligence (AI) industry doesn't have quite the sheen as it did earlier this summer. Investors have become increasingly wary of the technology's ability to deliver real-world value -- at least in a time frame that justifies the sky-high stock valuations investors have seen.
At the heart of this lies the technology's posterchild, Nvidia (NASDAQ: NVDA). The chipmaker's stock is down about 15% since it reported second-quarter earnings on Aug. 28. That's nearly half-a-trillion dollars -- $470 billion -- in market capitalization wiped out in a week. It's an incredible amount. There are only 15 companies on the planet with a market cap that exceeds what the company lost in a week. That shows just how big Nvidia is.
That kind of drop may make you nervous. It makes me nervous. Before you jump ship, however, let's consider some more context.
Source Fool.com
