Nvidia (NVDA) Loses $1T in Market Cap, Drops 10%: So What’s Next?
There is no denying that 2025 has not been kind to the US stock market this year. One of the biggest surprises has been Nvidia (NVDA), with the tech giant losing $1 trillion in market cap and dropping 10%, leading many investors to question what could be next for the AI chipmaker.
There was no company that had a better 2024 than Nvidia, jumping more than 174% that year. However, a combination of geopolitical uncertainty and economic fragility has forced it into a troublesome position this year. For now, all eyes are on the potential turnaround for a company that, at one point, had eyed a $4 trillion market cap record.
Also Read: Nvidia (NVDA): Jim Cramer Says Stock Is Still Best Bet in 2 Key Areas
Nvidia Stock Keeps Falling in 2025: When Will Things Turn Around?
It is incredible to think that just three months ago, Nvidia had closed at an all-time high price of $149.43. Then, it had an astonishing market cap of $3.7 trillion. Yet, its falling value this year has the stock down 22.28% year to date, with a market cap plummeting to the $2.65 trillion level.
It is certainly not a problem exclusive to the AI chipmaker, but throughout the year so far, Nvidia (NVDA) has lost $1 trillion in its market cap, with the stock dropping 10% over the last 5 days. With shares sitting at the $109 level, the question is, just where will the stock go from here?
Also Read: NVIDIA Stock Might Reach $200 by the End of 2027
The company is in an interesting predicament as its financials look strong. In its full fiscal 2025 data, it reported its data center business generated $115 billion in revenue. Moreover, that was an increase of 142% year over year. Additionally, sales from computing increased by 162% while its networking jumped 51% over the same time frame.
So, how does the outlook for the stock look? Well, things also look promising. Apple (AAPL) recently announced it is investing $500 billion in engineering and manufacturing over the next four years. That should rely heavily on Nvidia. Moreover, Amazon (AMZN), Microsoft (MSFT), and Alphabet (GOOGL) are set to increase AI spending to $250 billion this year alone.
That is why, amid the troublesome stock performance, Wall Street is still bullish on the stock. According to CNN data, 93% of 67 analysts have a buy rating on the stock. Moreover, its median price target sits at $175, which would signal a 60% upside for the stock before the year ends.
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Nvidia (NVDA) Loses $1T in Market Cap, Drops 10%: So What’s Next?
There is no denying that 2025 has not been kind to the US stock market this year. One of the biggest surprises has been Nvidia (NVDA), with the tech giant losing $1 trillion in market cap and dropping 10%, leading many investors to question what could be next for the AI chipmaker.
There was no company that had a better 2024 than Nvidia, jumping more than 174% that year. However, a combination of geopolitical uncertainty and economic fragility has forced it into a troublesome position this year. For now, all eyes are on the potential turnaround for a company that, at one point, had eyed a $4 trillion market cap record.
Also Read: Nvidia (NVDA): Jim Cramer Says Stock Is Still Best Bet in 2 Key Areas
Nvidia Stock Keeps Falling in 2025: When Will Things Turn Around?
It is incredible to think that just three months ago, Nvidia had closed at an all-time high price of $149.43. Then, it had an astonishing market cap of $3.7 trillion. Yet, its falling value this year has the stock down 22.28% year to date, with a market cap plummeting to the $2.65 trillion level.
It is certainly not a problem exclusive to the AI chipmaker, but throughout the year so far, Nvidia (NVDA) has lost $1 trillion in its market cap, with the stock dropping 10% over the last 5 days. With shares sitting at the $109 level, the question is, just where will the stock go from here?
Also Read: NVIDIA Stock Might Reach $200 by the End of 2027
The company is in an interesting predicament as its financials look strong. In its full fiscal 2025 data, it reported its data center business generated $115 billion in revenue. Moreover, that was an increase of 142% year over year. Additionally, sales from computing increased by 162% while its networking jumped 51% over the same time frame.
So, how does the outlook for the stock look? Well, things also look promising. Apple (AAPL) recently announced it is investing $500 billion in engineering and manufacturing over the next four years. That should rely heavily on Nvidia. Moreover, Amazon (AMZN), Microsoft (MSFT), and Alphabet (GOOGL) are set to increase AI spending to $250 billion this year alone.
That is why, amid the troublesome stock performance, Wall Street is still bullish on the stock. According to CNN data, 93% of 67 analysts have a buy rating on the stock. Moreover, its median price target sits at $175, which would signal a 60% upside for the stock before the year ends.
Read More