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, apprehensions are beginning to arise regarding the business prospects of this segment. Due to this, there was a huge fall in the share price of American tech company Nvidia related to AI segment on Tuesday. Its share price has declined by about 9.5 percent. This is the biggest one-day decline in the market value of an American company. However, Nvidia’s shares have also been affected by heavy selling in the market.

The company’s market capitalization declined by approximately $279 billion. This is a big sign of investors becoming more cautious about emerging AI technology. The PHLX chip index also declined about 7.75 percent on Tuesday. This is the biggest single-day fall in this index in the last four years. last week Nvidia Investors were disappointed by the quarterly forecast. This is affecting the share price of the company.

“There has been a lot of money pumped into tech and semiconductor companies over the last 12 months,” said Todd Sohn, ETF strategist at Strategas Securities. Shares of Intel, one of the biggest chip-making companies, were down by almost nine percent. News agency Reuters had reported in a report 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 had an impact on the company’s share price.

In the last few weeks, American Take Share prices of companies have fallen. The share prices of these companies have declined after the quarterly results of Microsoft, which is among the big software companies, and Alphabet, which runs Internet search engine Google. “Some recent research has questioned whether the revenues from AI will justify the capital expenditure,” investment firm BlackRock said in a client note. Nvidia’s share price almost tripled this year. Despite the recent decline, it is up about 118 percent so far this year.