Nvidia stock dips 5% due to Dutch firm's technical error
- Nvidia's stock dropped 4.5% on October 15, 2024, leading to a $155 billion loss in market capitalization.
- The decline was triggered by an unexpected earnings report from ASML, which indicated slower growth projections.
- This event underscores the volatility in the tech sector and the impact of supply chain dynamics on major companies like Nvidia.
On October 15, 2024, Nvidia experienced a significant drop in its stock price, falling 4.5% during trading. This decline resulted in a loss of approximately $155 billion in market capitalization, surpassing the total market value of AT&T, which stands at $154 billion. The downturn followed an unexpected earnings report from ASML, a Dutch company that supplies equipment for high-tech AI chip production. ASML's report, released earlier than anticipated due to a technical error, included a warning about slower growth projections for the company, which contributed to investor concerns about Nvidia's future performance. Despite this setback, Nvidia had previously enjoyed remarkable success, finishing 2023 as the best-performing stock in the S&P 500 with a staggering 239% gain. The company continued to thrive in 2024, with a 167% increase in stock value, driven by soaring demand for its graphics processing units (GPUs) used in generative AI applications. Nvidia's CEO, Jensen Huang, has seen his net worth fluctuate significantly due to these stock movements, losing $5 billion in the recent dip. The market's reaction to ASML's earnings highlights the interconnectedness of the semiconductor industry and the impact of supply chain dynamics on major players like Nvidia. Investors are closely monitoring these developments as they assess the future growth potential of Nvidia and its role in the AI technology landscape. Overall, the recent stock decline serves as a reminder of the volatility in the tech sector, particularly for companies heavily reliant on the semiconductor supply chain.