Nvidia Stock Dropped $406 Billion This Week

Nvidia Corp. wiped out 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 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.

Nvidia shares have swung between $90.69 and $131.26 over the past 30 trading days, with a record amount of market value being wiped out Tuesday. That level of gyration drove its 30-day realized volatility up to about 80 — roughly four times the level of Microsoft Corp., double Bitcoin’s figure and higher than meme stocks like 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, which dented investor euphoria. Then came news that the US Justice Department sent subpoenas in an escalating antitrust probe. Adding to the gloom for chipmakers broadly, Broadcom Inc. released a disappointing sales forecast.