The FTSE 100 index dropped by 0.76 percent in early trading, with major European indexes also down.
Shares of Nvidia, the leading AI chipmaker, dropped by 10 percent, sparked by investor concerns over the U.S. economy and the future of artificial intelligence.
This decline wiped $279 billion from the company’s market value, setting a record for the largest one-day loss by any company in U.S. stock market history.
Nvidia is at the center of the massive artificial intelligence (AI) boom as the company engineers advanced chips, systems, and software for the AI factories of the future.
As one of the world’s most valuable companies, Nvidia has a market capitalization of more than $2 trillion. Despite the drop, the company’s shares remain up 141 percent so far this year.
Nvidia
The losses came after Nvidia was sold heavily overnight as investors reacted to concerns about the growth of the AI sector, as well as U.S. economic growth.
Other U.S. tech giants, including Alphabet, Apple, and Microsoft, also saw their shares fall on Sept. 3.
The FTSE 100 index, which comprises the largest companies on the London Stock Exchange, dropped by 0.76 percent in early trading, with major European indexes also down.
Nvidia’s quarterly financial results and forecasts, announced last week, disappointed investors, despite that its sales doubled.
Nvidia’s earnings indicated that the company continues to perform strongly and beat estimates, but the company may be struggling to keep up with Wall Street’s high expectations.
Antitrust
On Sept. 3, Bloomberg, citing unnamed sources, reported that the U.S. Department of Justice had sent a subpoena to Nvidia regarding its antitrust practices.
Nvidia holds about 80 percent of the AI chip market.
Last month, the Department of Justice opened an investigation into the company following complaints from competitors that it had abused its market dominance.
“Nvidia wins on merit, as reflected in our benchmark results and value to customers, who can choose whatever solution is best for them,” a spokesperson for the company told Reuters.
David Belle, an analyst and founder of the trading platform Fink.Money, told The Epoch Times that there are significant points to consider: Major tech giants are purchasing from Nvidia simultaneously, driving demand.
