NVDA: Nvidia Suffers Worst Selloff in Four Years. Here’s Why the Stock Collapsed 10% in One Day

Wall Street’s biggest AI play erased $212 billion from its market cap as a broad-based selling wave swept Big Tech players.

Key Points:

• Nvidia sheds 10% on Friday.
• SMCI leads AI selloff with 23% drop.
• Rush-hour earnings approaching fast.
• Nvidia stock NVDA washed out more than 10% of its valuation, or $212 billion, on Friday, clocking out at a two-month low of $762 a share. It was the company’s worst single-day plunge since the early days of Covid back in March 2020. Nvidia is at the top of the AI wave, and whenever something hits that trend, it’s Nvidia taking in the initial shockwave.
• Before Nvidia nosedived, its AI peer — Super Micro Computer SMCI — didn’t report its preliminary earnings data as it usually does. The blunder was met with a sharp selloff and Super Micro, a highly revered AI play, shed 23% on the day. What’s more, it threw off the entire AI trend, including Nvidia shares, as investors panicked over the frothy dynamics of the novel sector.
• Still, analysts expect to see a solid earnings report by Nvidia. On deck to deliver figures on May 22, the favorite AI darling is projected to post profit growth of 38% in the first quarter compared to the first three months of 2023. Nvidia, which Goldman Sachs GS called “the most important stock on planet Earth,” is up nearly 60% since the start of January, but down 20% from its record high.