AI Giants Lose Almost Half a Trillion Dollars in Value in Less than a Week

After two years of unstoppable growth, the AI heavyweights have seen their stock values nosedive over the past two months. This was triggered by the US government’s expanded export restrictions on AI chips to China, expectations of future interest rate cuts, valuation concerns, and mixed earnings reports. Just when it seemed most of them were back on track for growth, September brought a new hit.

According to data presented by Stocklytics.com, the world`s largest AI companies, Microsoft, Alphabet, Nvidia, and Meta, have collectively lost almost half a trillion dollars in stock value in less than a week.

Nvidia Tops with a $320 Billion Stock Value Drop in Five Days

So far, the second half of 2024 has been uneasy for AI giants. After adding over $3.8 trillion to their stock values in the first six months of the year, July`s tech selloff sent shockwaves through the market, erasing almost 45% of their half-year gains.

However, worries about slow payoffs from hefty AI investments brought a new hit to AI stocks in the first days of September, with some of them seeing the steepest single-day drop ever. The softened investor`s optimism about artificial intelligence has caused hundreds of billions of dollars of new losses.

According to Stocklytics analysis, the world`s AI heavyweights—Microsoft, Nvidia, Alphabet, and Meta—have collectively lost a shocking $490 billion in stock value in the past five days. The US chipmaker Nvidia contributed 65% of this figure, with a whopping $320 billion five-day stock value drop. On August 31, Nvidia had a market cap of $2.93 trillion, and now it`s $2.61 trillion.

Although counted in tens of billions of dollars, other AI giants saw much smaller losses. Statistics show Alphabet`s stock value plunged by $90 billion since last week, falling from $2.02 trillion to $1.93 trillion. The world`s second most valuable tech company, Microsoft, lost $60 billion in five days, with its market cap now at $3.04 trillion. Meta follows with a $20 billion drop and $1.3 trillion in stock value as of this week.

Surprisingly, Tesla, usually the worst performer among the AI heavyweights, saw its market cap grow by nearly $17 billion since last week, helping its valuation reach a $700 billion mark again.

Over 60% of Half-Year Gains Lost in the Past Two Months

With September bringing almost a half-a-trillion-dollar hit to AI companies, their combined two-month loss climbed to shocking highs. Since July, the combined market cap of Microsoft, Nvidia, Alphabet, Meta, and Tesla has plunged by a massive $2.36 trillion, representing more than 60% of their half-year gains.

Although all eyes are set on Nvidia, Meta has seen the biggest stock value drop in the past two months, losing $780 billion since the tech selloff started, or $150 billion more than Nvidia. The market cap of the US chipmaker has plunged by $630 billion in this period. Statistics show Microsoft and Alphabet have lost around $430 billion in stock value since July each, and Tesla follows with roughly $89 billion.

The full story and statistics can be found here.