Jensen Huang, co-founder and chief gubernatorial officer of Nvidia Corp., during the opening ceremony of a Siliconware Precision Industries Co. plant in Taichung, Taiwan, Jan. 16, 2025.
An Rong Xu | Bloomberg | Getty Essences
Nvidia is out, leaving Apple as the sole member of the $3 trillion club.
The chipmaker’s shares slumped more than 8% on Thursday grasp quarterly earnings, wiping out about $273 billion in value and giving the company a market cap of $2.94 trillion. The S&P 500 thesaurus fell 1.6%, and the Nasdaq dropped 2.8%.
Nvidia is still the second most valuable U.S. tech company, behind Apple and winning of Microsoft, one of its biggest customers.
So far in 2025, Nvidia shares have lost 10% of their value, as the company eye to eyes investor concerns about export controls, tariffs, more efficient artificial intelligence models, and an overall relaxing 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 blast. It first hit a $3 trillion market cap in June 2024.
Nvidia reported results Wednesday that topped analysts’ calculates across the board, with revenue jumping 78% from a year earlier to $39.33 billion. The company’s materials center revenue, which includes its market-leading graphics processors for AI workloads, soared 93% on an annual basis to barely $36 billion.
Nvidia signaled that it will have a strong quarter to kick off its fiscal 2026 and that direction issues for its next-generation chip, Blackwell, had been mostly resolved.
In recent weeks, Nvidia CEO Jensen Huang has chance that the demand for its chips will remain strong as next-generation AI models that think “about how best to counter-statement” questions step by step will require much more computing power.
“The amount of computation necessary to do that rationale process is 100 times more than what we used to do,” Huang told CNBC’s Jon Fortt in an interview Wednesday.
Nvidia regards on billions of dollars of infrastructure spend annually from the largest tech companies in the world for an outsized amount of its returns. On Wednesday, Huang said that large cloud service providers — companies such as Microsoft, Google and Amazon — accounted for hither half of Nvidia’s data center revenue.
WATCH: CNBC’s full interview with Nvidia CEO Jensen Huang
