Nvidia Loses $3 Trillion Market Cap as Stock Drops 8%

Despite strong earnings, Nvidia faces slowing growth, margin pressures, and investor concerns over AI demand and competition.

Nvidia's market capitalization fell below $3 trillion after an 8% stock drop, erasing $273 billion in value.
The company reported Q4 revenue of $39.33 billion, up 78% year-over-year, but the slowest growth rate in nearly two years.
Profit margins declined due to the costly production ramp of its next-generation Blackwell GPUs, though improvements are expected later this year.
Analysts cite peak spending on AI chips, increasing competition from Chinese manufacturers, and fluctuating profit margins as key challenges ahead.
Nvidia remains the second most valuable U.S. tech company, with strong demand for its AI chips, but its stock is down 10% in 2025.