Nvidia Sheds Nearly $500 Billion in a Week and Still Sits at $4 Trillion

Nvidia lost close to $500 billion in market value this week, a sharp pullback for the chipmaker that has been the center of the AI trade. Even after the selloff, the company is still valued at roughly $4 trillion, which keeps it among the largest businesses in the world.

The drop raises a question investors are now weighing: can Nvidia hold its commanding position in AI chips without Jensen Huang, the co-founder and chief executive who has guided the company through its rise? Analysts are looking at whether the lead rests mainly on the chips themselves, on its software and customer ecosystem, or on one leader's strategy. Demand from data center builders drives much of the company's business, so any sign that spending is slowing tends to show up quickly in the share price.

The broader market is also watching inflation. Hotter price readings could keep interest rates elevated for longer, which typically weighs on richly valued technology stocks. Because Nvidia is so large, its moves ripple through major stock indexes, so its direction matters well beyond one company.