New Delhi: Shares of America's leading technology company Nvidia Corp fell sharply on Tuesday (Nvidia Share Price Down). It fell 9.53 percent to close at $ 108.00. This has led to a record drop in Nvidia's market cap by $ 279 billion (Rs 23.42 lakh crore). This is almost equal to Warren Buffett's current cash reserves. Earlier, the market cap of any American company had never fallen so much in a day.

Why did Nvidia shares fall?

Many economic figures in the US are indicating a recession. Also, investors seem to be losing their craze for Artificial Intelligence (AI). Due to this, investors are more focused on selling. Nvidia's quarterly results were quite good. Still, there is a fear in the minds of investors that AI stocks are now showing their full strength and they are unlikely to grow much from here.

Investors' perspective on AI is changing

Nvidia's shares made their all-time high in July. Since then, its shares have been falling continuously. This shows that investors' view on AI is changing. The PHLX Semiconductor Sector fell by 7.75%. This is the biggest one-day decline since 2020. The PHLX Semiconductor Sector Index is composed of the 30 largest US companies primarily involved in the design, distribution, manufacturing and sale of semiconductors. Intel shares also fell by about 9 percent.

Nvidia CEO's wealth also decreased

Co-founder and CEO Jensen Huang has also suffered a setback due to the fall in Nvidia Corp's shares. His wealth has declined the most so far. On Tuesday, Huang's total wealth decreased by about $ 10 billion. Now it is $ 94.9 billion. Huang's net worth data is available since 2016. Earlier, his wealth had never decreased so much in a day.

Is America going to face a recession?

Manufacturing equities in the US continue to remain sluggish. Unemployment has also increased the government's concern. However, the US central bank has tried to boost investors' morale by hinting at a cut in interest rates. Now investors' attention is on the US employment data coming on Friday. There was a big fall in the US stock market on Tuesday. The Dow Jones Industrial Average fell 1.51 percent and the Nasdaq Composite fell 3.26 percent.