Nvidia's U.S. Market Cap Sheds 801 Trillion Won Intraday, Then Rebounds on Retail Investors' Bargain Buying

[Financial News] NVIDIA, a U.S. artificial intelligence (AI) semiconductor company, saw more than $600 billion (about 801 trillion won) wiped from its market capitalization at one point during trading after former CEO Jensen Huang resigned. Individual investors immediately began buying the dip.
NVIDIA shares, listed on the Nasdaq in the United States, closed at $166.19 on the 12th (local time), down 4.3% from the previous day. Its market capitalization was estimated at about $4.013 trillion, down about $182 billion (about 242 trillion won) from the previous day.
The stock opened at $151, down 13.1%, after news of Jensen Huang's resignation, and fell as low as $148.80 during the session. That was a 14.3% drop from the previous day's close and the lowest level in about 17 months, since June last year. NVIDIA's market capitalization shrank by $602 billion (about 801 trillion won) to $3.593 trillion amid the plunge, briefly falling behind Microsoft's (MS).
The day's losses narrowed, however, as individual investors piled in to buy the dip. On Fidelity's U.S. platform for individual investors, buy orders for NVIDIA shares were five times the number of sell orders. In addition, by early afternoon that day, the dollar value of NVIDIA shares traded was about $90 billion, nearly a third of the total for all S&P 500 constituents. The record for the highest daily trading value ever for a single stock is $104 billion, set by NVIDIA on March 8, 2024.
NVIDIA held on to second place by market capitalization at the close that day. The gap with MS, in third place with a market capitalization of $3.884 trillion, was about $129 billion. The closing price was its lowest in about seven months, since March 30 ($164.79). NVIDIA shares were down 11% from the 6th, the last trading day before Jensen Huang admitted to an affair, and its market capitalization fell by about $494 billion (about 657 trillion won) over the same period.
Eight U.S. financial firms downgraded their ratings on NVIDIA on the 12th. So far this week, 20 firms have cut their price targets. Despite Jensen Huang's resignation, NVIDIA plans to report its third-quarter results as scheduled on the 17th.
[email protected] Park Jong-won Reporter