Nvidia's $1 Trillion Slide Sends Valuation to Pre-AI Boom Levels

What happened

Nvidia lost more than $1 trillion in market capitalization in under two months. Shares fell over 16% from the all-time high set on May 14, 2026, dropping below $200 — levels last seen before the AI boom began.

Context and impact

Investors are rotating away from Nvidia toward competing chipmakers, particularly in the memory segment. Escalating tensions in the Middle East pushed U.S. stock futures sharply lower on July 8, adding further pressure. Amazon's expansion of its Trainium chips beyond AWS is the latest direct competitive challenge. Despite the selloff, Nvidia remains the world's most valuable company.

Details

• Decline from ATH (May 14, 2026): -16% to -18%
• Share price morning July 8, 2026: ~$193
• Market cap: ~$4.77 trillion
• Driver: investor rotation to memory chipmakers + Middle East geopolitics
• Amazon Trainium expansion as the newest attack on Nvidia's competitive edge