Nvidia’s market cap dropped by almost $330 billion in 24 hours – here’s why

• Nvidia’s market cap tanked a mammoth 6% following weaker-than-expected guidance from rival chipmaker Broadcom
• The stock erased $330 billion in Nvidia market cap, effectively losing its $5 trillion market cap crown briefly before regaining it in the same session
• The behavior is in line with how high beta, or more volatile, chip and AI-linked stocks, respond to earnings

Nvidia remains the largest stock in the market with a $5 trillion market cap, but recent movements in the market, linked to another stock market darling, Broadcom, may have shaken the belief of some of its key proponents in a market increasingly wary about AI’s lofty valuations in 2026.

Broadcom’s recent earnings report underscored strong performance with in-line forecasts that reaffirmed its positioning as one of the most important chipmakers in a market that continues to pivot resources towards AI.