Last week NVIDIA became the company with the world's highest market value of around $3.335 trillion (~RM 15.68 trillion). Yesterday it rose to third place after being overtaken by Microsoft and Apple. Today NVIDIA's stock value continues to decline causing its market value to now fall to $2.905 trillion.
In fact, NVIDIA's stock value has declined from $139.89 last Thursday to $118.10 yesterday, a decrease of 15.6%. Shares fell further after reports emerged that company CEO Jensen Huang sold $95 million worth of stock shortly after NVIDIA achieved the status of the world's most valuable company.
Analysts say the fall is also due to the normalization of the company's stock value, which has surged 40% since the start of 2024. This is driven by high demand for NVIDIA-produced CPUs and GPUs used to train AI models. Currently NVIDIA holds 90% of the global GPU market.
Although the "AI fever" is still palpable, public concerns about the development of artificial intelligence threatening human careers and high energy and water consumption by data centers also strengthen opposition to AI.
