GPU developer Nvidia lost more than $550 billion in capitalization in three trading days. This happened after reaching its peak value, when Nvidia became the most valuable public company in the world.
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According to trading results on June 24, Nvidia shares lost approximately 7% in price and the technology company’s capitalization fell below $3 trillion. Early last week, Nvidia surpassed Microsoft in value to become the world’s most valuable publicly traded company, with a market capitalization of $3.46 trillion at its peak.
But a few days later, at the end of trading on June 24, the company’s capitalization was $2.905 billion. Thus, the company’s shares lost around 16%; At the close of trading they cost $118.11.
Thus, Nvidia recorded the largest capitalization drop in history: compared to the peak of June 20, the company lost around $430 billion. The event turned out to be sensitive for the chip maker market. The fall in Nvidia’s capitalization caused a drop in the share prices of Broadcom (-4%), Qualcomm (-5.5%), Taiwan Semiconductor Manufacturing Company (-3.5% in the US) and ARM (-5.8%).
The reduction in the value of Nvidia shares began after it became known that the company’s CEO, Jensen Huang, had sold shares before and after the company’s rise to first place in capitalization.
The sale was part of a trading plan that was approved in March under Rule 10b5-1 of the U.S. Securities Exchange Act.
The rule allows company insiders to make a trading plan in advance to sell shares and avoid accusations of insider trading.
Author:
Natalia Gormaleva
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
