Nvidia Loses $450 Billion in Market Value in Three Days – Biggest Drop Since January 2025
The artificial intelligence giant Nvidia has seen an extraordinary decline in its market capitalization, losing nearly $450 billion over the past three trading days. The sell-off marks the company’s steepest drop since January 2025, when AI-related stocks last faced a major correction.
The Sharpest Fall of the Year
After months of relentless growth, Nvidia’s stock fell sharply as investors took profits amid growing concerns about valuation excesses in the AI sector. The company’s market capitalization — which briefly surpassed $3 trillion earlier this year — has now retreated significantly as tech momentum cooled.
Analysts describe the decline as part of a broader rotation away from overextended technology names, with AI chipmakers at the center of the downturn. Despite the correction, Nvidia remains one of the most valuable companies in the world, maintaining a leadership position in AI infrastructure and GPU innovation.
Market Factors Behind the Drop
Several factors contributed to the decline:
• Investors locking in profits after Nvidia’s record-setting run.
• Rising Treasury yields pressuring high-valuation tech stocks.
• Cooling enthusiasm for AI-related equities following months of hype.
Market analysts from Bloomberg and CNBC noted that such pullbacks are not uncommon after explosive rallies, particularly when valuations stretch far beyond fundamental earnings potential.
Nvidia’s Long-Term Outlook Remains Strong
Despite the record short-term loss, many analysts still view Nvidia as the backbone of the global AI revolution. Demand for its GPUs remains robust, powering everything from data centers and AI training models to autonomous vehicles and robotics.
Nvidia’s CEO, Jensen Huang, recently reaffirmed the company’s strategic focus on next-generation chips and software ecosystems to sustain long-term growth.
Conclusion
Nvidia’s $450 billion loss underscores the volatility of the current AI-driven bull market. While short-term corrections are shaking investor confidence, Nvidia’s long-term position as a leader in artificial intelligence and computing remains largely unchallenged.
The coming weeks will reveal whether this drop marks the start of a broader tech correction — or just another pause in the relentless ascent of AI-powered innovation.
