TECH NEWS – NVIDIA lost $279 billion in market value in just 24 hours, highlighting the possible bursting of the AI ​​bubble…

Few companies have achieved the numbers NVIDIA produced during the AI ​​boom. As interest in this technology opportunity has grown, the company behind some of the industry’s most popular graphics cards has seen unprecedented growth in value. It is on par with companies like Apple and Microsoft, two of the most valuable companies in the world. Unfortunately, however, the good times seem to be over for NVIDIA.

As TechSpot recently reported, NVIDIA posted a historic loss—279 billion dollars to be exact—the biggest one-day drop in US history. Unfortunately for the company’s interests, shares fell more than 9% on weak economic data and another 2.4% in after-hours trading after receiving a subpoena from the Justice Department in an antitrust investigation. Thus, thanks to this fall, they managed to break Meta’s negative record and left behind the $232 billion that Mark Zuckerberg’s company lost in February 2022.

The fall of NVIDIA is a dark omen for the future of AI development

According to many, one of the main reasons for the fall is related to the rise of generative artificial intelligence. This made NVIDIA the third most valuable company in the world. However, the return on investment in artificial intelligence is falling short of the costs. In fact, the return on spending was becoming less and less, which started to worry investors. This situation worsened between April and July.

They indicated that “Big Tech” would need to generate $600 billion annually to justify AI hardware spending.

As a result, many suggest that the AI ​​market may be close to a bubble about to burst. As such, things like the recent plunge in NVIDIA stock and quarterly forecasts that fell short of growth expectations have fueled one thought: the generative AI business may be about to explode. Indeed, many consumers are indifferent or even hostile to AI. People are generally wary of products that leverage technology. Either way, if this trend continues, we could be headed for a market crash similar to the dot-com bubble of 2000.

Source: TechSpot