Nvidia Lost 1 Trillion Dollars in Market Value in Two Months

Nvidia, the undisputed leader of the artificial intelligence race in recent years, is facing a pronounced correction period in the market. The company's shares have experienced a loss of approximately 16 percent since the record level recorded on 14 May. This decline has caused approximately 1 trillion dollars to be wiped off the company's market value. When expressed in Brazilian currency, this amount corresponds to approximately 5.15 trillion Real. Market participants explain this situation not with a deterioration in the company's fundamental data, but rather with a change in investor strategies.

According to Bloomberg sources, the loss in value does not point to a structural problem threatening Nvidia's financial health or business model. Instead, it is observed that investors are carrying out a sectoral rotation, shifting their capital to other players in the semiconductor industry. Particularly, firms producing memory and data storage solutions have become new investment targets benefiting from the rapid expansion of artificial intelligence infrastructure. These companies are attracting attention because they offer critical components that respond to the increasing needs of data centers. Therefore, the capital movements in the market are considered an indicator that the artificial intelligence ecosystem is not limited to graphics processing units (GPUs).

Following this loss in value, Nvidia's valuation metrics have also receded to a more attractive level than the general market. The company's shares are trading at approximately 18 times its projected earnings for the next 12 months. This ratio draws attention by falling below the valuation of over 20 times for the S&P 500, one of the leading stock market indices in the USA, and the multiple of around 23 times for the Nasdaq 100. Analysts state that this situation means the company has become cheaper, but it also reflects that market perception has changed. Because the company experienced a tremendous value gain exceeding 1,100 percent in the period from the end of 2022 to the end of 2025, and wrote its name among the most valuable companies in the world.

However, the slowdown in Nvidia shares has become a pronounced trend across the general stock market this year. While the company's shares have gained only 5.6 percent in value during the year, in the same period, the S&P 500 index rose by 9.6 percent and the Nasdaq 100 index rose by 16 percent. On the other hand, the Philadelphia Stock Exchange's semiconductor index recorded an impressive increase of 74 percent during the year, heading towards its strongest annual performance since 2003. This situation reveals that the semiconductor sector continues to grow in general, but investors are now diversifying their earnings sectorally rather than solely on Nvidia. This capital, spread across various branches of the sector, also highlights other technology manufacturers that remain in the shadow of the AI giant.

Micron, a memory manufacturer, is at the forefront of the companies that benefit the most from the rotation in question. With the increasing demand for high-bandwidth memory, which is of critical importance for artificial intelligence systems, Micron's shares gained 229 percent in value this year. This rise came right after the extraordinary 239 percent increase the company recorded in the previous year and clearly proved the demand转移 in the sector. Despite this, financial analysts on Wall Street insist on the view that Nvidia continues to be the main player in the artificial intelligence market. The company closed the year 2025 by increasing its GPU share in the server market from 95 percent in the previous year to 97 percent, maintaining its overwhelming superiority in this field. This data shows that despite the market corrections experienced, the company has not yet lost its monopoly position in the sector.