Nvidia's shares plummet, wiping out $430 billion from its value

Nvidia, the US chipmaker, has lost its position as the world's most valuable listed company after its stock plummeted nearly 13% in the past week. The company's market capitalization, which had briefly surpassed Microsoft's to reach $3.34 trillion on June 18, has since dropped by $430 billion, now standing at $2.91 trillion. This places Nvidia in third place globally, behind Microsoft and Apple. The recent decline in Nvidia's stock, which fell 6.7% on Monday, has raised concerns among investors about the company's rapid growth and its role in the artificial intelligence revolution. Nvidia's stock has experienced significant volatility, with a 139% surge over the past year driven by its chips powering AI systems. However, the recent sell-off indicates a shift in investor sentiment, with some opting to take profits from high-performing stocks like Nvidia. The company's position as a member of the Magnificent Seven, a group of tech giants that outperformed the broader US stock market last year, has contributed to the concentration of the US stock market. Despite Nvidia's stock decline impacting US equity returns, experts like Derren Nathan from Hargreaves Lansdown remain optimistic about the broader market's resilience. The news of Nvidia's fall comes amidst other developments, including accusations of anti-competitive behavior against Microsoft by the European Commission and changes in interest rates by Barclays and HSBC. While Nvidia's shares are set to open higher, recovering from Monday's losses, concerns linger about the sustainability of its growth trajectory and the potential implications for the broader market. In the UK, companies like SIG, a building supplies firm, are facing challenges due to subdued demand in the construction sector, leading to a significant drop in annual profits. Meanwhile, Primark owner Associated British Foods saw a rise in shares following a target price increase by HSBC. The fluctuating market conditions, coupled with global economic uncertainties, are prompting investors and analysts to closely monitor developments in key sectors like technology, construction, and retail.