This week’s $406 billion decline in Nvidia makes Bitcoin appear serene

Nvidia Corp. erased about $406 billion in value this week, weighing on key equity benchmarks as jitters spread over the health of the US economy and an AI trade that may have gotten ahead of itself.

The world’s largest artificial-intelligence chipmaker lost a fifth of its value over the past two weeks. The declines also showcase a more pressing issue for investors in the $2.5 trillion giant:

Its volatility now dwarfs its Magnificent Seven peers and makes Bitcoin look like a port of calm.

Nvidia shares have seesawed between $90.69 and $131.26 over the past 30 trading days, including a record amount of market value wiped out Tuesday.

That kind of gyration drove its 30-day realized volatility up to about 80-four times the level of Microsoft Corp., double Bitcoin’s figure and higher than meme stocks such as Donald Trump’s media company and Elon Musk’s Tesla Inc.

The stumble has pushed the stock to its worst two-week stretch in two years, data compiled by Bloomberg show. The declines came after a tepid forecast and issues for its Blackwell chip dented investor euphoria.

Then came news that the US Justice Department sent sub in an escalating antitrust probe. Adding to the gloom for chipmakers broadly, Broadcom Inc. released a disappointing sales forecast.

“You’re just in a very difficult market environment right this second,” said Rhys Williams, chief strategist at Wayve Capital Management LLC, adding that the AI trade is still in its early days. Still, “on a day-to-day basis, where the bottom is, is anybody’s guess.”

Of course, the stock has handsomely rewarded investors this year-even with the recent slide. The shares are still up more than 100% this year, adding $1.3 trillion in market value.

And Wall Street roundly expects that Nvidia remains well positioned as companies build out infrastructure related to AI-a process that’s expected to last for several more quarters at least.

Nvidia’s biggest customers-Microsoft Corp., Meta Platforms Inc., Alphabet Inc. and Amazon.com Inc., which together account for more than 40% of Nvidia’s revenue, according to data compiled by Bloomberg-confirmed their spending plans in the most recent quarters.

Results from Nvidia last week certainly confirmed that rosy view. Revenue more than doubled and came in better than expected, as did adjusted earnings.

The company also provided a revenue forecast that beat the analyst consensus, though failing to meet the high end of estimates.

The world’s largest maker of artificial-intelligence chips shed a fifth of its value over the past two weeks. The declines also showcase a more pressing issue for investors in the $2.5 trillion giant:

Its volatility now dwarfs its Magnificent Seven peers and makes Bitcoin look like a port of calm.

The world’s largest maker of artificial-intelligence chips shed a fifth of its value over the past two weeks.

The declines also showcase a more pressing issue for investors in the $2.5 trillion giant: Its volatility now dwarfs its Magnificent Seven peers and makes Bitcoin look like a port of calm.

That was a result that underwhelmed market participants accustomed to blowout reports, and feeds into concerns for those skeptical about the long-term outlook for spending on AI.

That means the volatility in shares of Nvidia and other chipmakers could continue as investors digest the evolution of the AI theme. For money managers who want to get in for the long haul, it could spell opportunity.

Nvidia’s results last week certainly confirmed that rosy view. Revenue more than doubled and came in better than expected, as did adjusted earnings. The company even gave a revenue forecast that beat the analyst consensus – though failed to meet the high end of estimates