Nvidia is out, leaving Apple as the sole member of the $3 trillion club.
The chipmaker’s shares slumped more than 8% on Thursday following quarterly earnings, wiping out about $273 billion in value and giving the company a market cap of $2.94 billion. The S&P 500 index fell 1.6% and the Nasdaq dropped 2.8%.
Nvidia is still the second most valuable U.S. tech company, behind Apple, and ahead of Microsoft, one of its biggest customers.
So far in 2025, Nvidia shares have lost 10% of their value, as the company faces investor concerns about export controls, tariffs, more efficient artificial intelligence models, and an overall slowing pace of growth.
Even after the latest slide, Nvidia is still worth five times more than it was two years ago, at the start of the generative AI boom. It first hit a $3 trillion market cap in June 2024.
Nvidia reported results on Wednesday that topped analysts’ estimates across the board, with revenue jumping 78% from a year earlier to $39.33 billion. The company’s data center revenue, which includes its market-leading graphics processors for AI workloads, soared 93% on an annual basis to nearly $36 billion.
Nvidia signaled that it was going to have a strong quarter to kick off its fiscal 2026, and that production issues for its next-generation chip, Blackwell, had been mostly resolved.
In recent weeks, Nvidia CEO Jensen Huang has said that the demand for its chips will remain strong as next-generation AI models that think “about how best to answer” questions step by step will require much more computing power.
“The amount of computation necessary to do that reasoning process is 100 times more than what we used to do,” Huang told CNBC’s Jon Fortt in an interview on Wednesday.
Nvidia counts on billions of dollars of infrastructure spend annually from the largest tech companies in the world for an outsized amount of its revenue. On Wednesday, Huang said that large cloud service providers — companies like Microsoft, Google, and Amazon — accounted for about half of Nvidia’s data center revenue.