Nvidia, the powerhouse chipmaker that recently joined Apple in the exclusive $3 trillion market capitalization club, saw its membership cut short after its shares tumbled more than 8% on Thursday. The steep decline erased approximately $273 billion in market value, bringing the company's total worth to $2.94 trillion.
The stock drop came despite Nvidia reporting impressive quarterly results on Wednesday, with revenue surging 78% year-over-year to $39.33 billion. The company's data center segment, which includes its AI-focused graphics processors, showed remarkable growth of 93%, reaching nearly $36 billion.
The broader market also experienced downward pressure, with the S&P 500 falling 1.6% and the Nasdaq dropping 2.8%. This leaves Apple as the sole member of the $3 trillion valuation club.
Several factors have contributed to investor concerns in 2025, including export controls, tariffs, the emergence of more efficient AI models, and expectations of slower growth. Since the start of the year, Nvidia's stock has declined 10%.
Despite the recent setback, Nvidia's growth story remains compelling. The company's value has multiplied five-fold since the beginning of the generative AI boom two years ago. CEO Jensen Huang remains optimistic about future demand, noting that next-generation AI models will require substantially more computing power - up to 100 times more than current systems.
The company maintains strong relationships with major tech giants, with large cloud service providers like Microsoft, Google, and Amazon accounting for approximately half of Nvidia's data center revenue. While no longer in the $3 trillion club, Nvidia remains the second most valuable U.S. technology company, positioned between Apple and Microsoft.