Investors worry for AI take its toll on Nvidia, Market Value of Company down by USD 279 Billion, Google, Microsoft

The use of Artificial Intelligence (AI) has increased rapidly in the last few years. However, doubts have arisen about the business prospects of this segment. Due to this, the share price of American tech company Nvidia, associated with the AI ​​segment, fell sharply on Tuesday. Its share price has fallen by about 9.5 percent. This is the biggest one-day drop in the market value of an American company. However, Nvidia’s stock has also been affected by heavy selling in the market.

The company’s market capitalization fell by about $279 billion. This is a big sign that investors are becoming more cautious about emerging AI technology. The PHLX Chip Index also fell by about 7.75 percent on Tuesday. This is the biggest one-day drop in this index in the last four years. Last week Nvidia Investors were disappointed with the quarterly forecast of . This is affecting the share price of the company.

“There has been a lot of money invested in tech and semiconductor companies over the last 12 months,” said Todd Sohn, ETF strategist at Strategas Securities. Shares of Intel, one of the big chip makers, fell by nearly nine percent. News agency Reuters had reported that Intel’s CEO Pat Gelsinger and some senior executives may present a plan to the company’s board of directors to close non-essential businesses and cut capital expenditure. This report has affected the company’s share price.

Share prices of US tech companies have fallen in the past few weeks due to slow returns on heavy investments in AI. Share prices of software giants Microsoft and Alphabet, which runs internet search engine Google, have fallen after their quarterly results. Investment firm BlackRock said in a client note, “Some recent research has called into question whether revenues from AI will justify the capital expenditure being made on it.” Nvidia’s share price had nearly tripled this year. Despite the recent decline, it is up about 118 percent so far this year.