channelnews : Nvidia Slide Continues In After-Hours Trade, $430 ...

Nvidia stock continued to fall in after-hours trade in the US, following a horror day in which a mind-bending US$289 billion (A$431 billion) was wiped from the value of the multi-trillion-dollar company.

At the close of trade Nvidia stock was at US$108 (A$161), representing a 9.5% one-day haircut, however in four hours of late trading into the early evening, it drifted further to close at US$105.39 (A$157).

Early trade opens at 8am Eastern Time in the US and tech investors will be watching closely to see if the stock stabilises, rallies or continues to head south.

The 12-month highs and lows for Nvidia are about US$140 (A$210) and US$40 (A$60), respectively, so there is still a lot of upside for those who got in towards the lower end.

However, multi-hundred-billion-dollar losses don’t happen every day, and it’s left some jittery following the early August dip in the US market. 

Tech stocks, particularly in AI, are considered by many to be overvalued, and thus ripe for corrections if the wider market gets the wobbles.

Meanwhile, Bloomberg is reporting that the US Justice Department has sent subpoenas to Nvidia and other companies “as it seeks evidence that the chipmaker violated antitrust laws, an escalation of its investigation into the dominant provider of AI processors”.

“The DOJ, which had previously delivered questionnaires to companies, is now sending legally binding requests that oblige recipients to provide information, according to people familiar with the investigation. That takes the government a step closer to launching a formal complaint.”