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American chip giant Nvidia has lost around 200 billion dollars in market value today. The chip maker’s share fell 10 percent. Investors fear that Nvidia’s quarterly figures will be lower than initially expected, partly due to geopolitical tensions and persistent inflation.
In recent years, the video card manufacturer has grown rapidly on the stock exchange. In five years, the value of the share increased sevenfold, from $40 to $700. Also the advantage grew a lot. Last year the chipmaker made a profit of more than 27 billion euros; in 2022 that amount was still the turnover.
Nvidia has grown rapidly in recent years due to the growing demand for AI (artificial intelligence) applications. At first, players mostly used the cards, but due to computing power, the chips have also become important in data centers. These give AI programs like ChatGPT the computing power they need, for example to generate responses.
Nvidia’s fall in value comes in the same week as Dutch chip maker ASML disappointing quarterly figures name The company’s turnover has fallen in the last three months compared to the same period a year ago. The turnover came to 5.3 billion euros, a decrease of 20 percent.
2024-04-19 21:04:17
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