Nvidia Stock Sheds Up to $153 Billion. More Than Its Entire 2026 Profit

Nvidia stock fell more than 2% Tuesday, erasing as much as approximately $153 billion from the AI chipmaker’s market capitalization during a broad semiconductor selloff.

NVDA dropped to an intraday low of $218.69, down $6.32 from Monday’s closing price of $225.01. Multiplying that decline by Nvidia’s approximately 24.2 billion outstanding shares produces an estimated market-value loss of $152.9 billion.

The stock subsequently recovered to approximately $220.18 by 12:59 p.m. Eastern Time, reducing its session decline to 2.15% and its estimated market-cap loss to about $117 billion, according to Google Finance.

These figures fluctuate continuously while the stock is trading. However, at Tuesday’s intraday low, Nvidia had briefly erased more market value than it earned during its entire 2026 fiscal year.

Intraday Loss Exceeded Nvidia’s Annual Profit

Nvidia generated $120.07 billion in GAAP net income during fiscal 2026, an increase of 65% from the previous year.

Therefore, the company’s maximum intraday valuation loss of approximately $153 billion exceeded its record annual profit by almost $33 billion.

This comparison does not mean Nvidia lost $153 billion in cash or suffered an operating loss. Market capitalization represents the value investors collectively assign to a company’s outstanding shares. It can increase or decrease rapidly without changing the company’s cash balance, revenue or earnings.

Nevertheless, the comparison demonstrates the extraordinary valuation sensitivity of a company worth more than $5 trillion. A stock-price movement of less than 3% can create or destroy more paper wealth than Nvidia produces in annual profit.

According to Nvidia’s official fiscal 2026 results, full-year revenue reached $215.94 billion, while net income totaled $120.07 billion.

Why Nvidia Stock Is Falling

No major company-specific negative announcement appeared to trigger Tuesday’s decline.

Instead, Nvidia was caught in a widespread semiconductor selloff as investors reacted to rising Treasury yields, higher oil prices and renewed geopolitical uncertainty involving the United States and Iran.

The Philadelphia Semiconductor Index fell approximately 5.4%. It was on pace to erase more than $680 billion in combined market value if the losses held through the close.

Micron, SanDisk, Western Digital, AMD and several other chip-related companies recorded steeper percentage declines than Nvidia.

Higher Treasury yields can pressure highly valued technology stocks because they reduce the present value investors assign to profits expected many years in the future. They can also increase borrowing costs for companies funding large infrastructure projects.

The 30-year Treasury yield reached its highest level since 2007, while the 10-year yield remained near its highest point since January 2025.

Brent crude oil also climbed as fading expectations for an extended U.S.-Iran ceasefire revived inflation concerns. LSEG data cited by Reuters showed traders assigning a 96% probability to a 25-basis-point Federal Reserve rate increase before the end of 2026.

The session therefore appeared to represent a broader retreat from highly valued semiconductor stocks rather than a sudden deterioration in Nvidia’s underlying business.

Nvidia Earnings Become the Next Major Test

Nvidia will report its fiscal second-quarter results on August 26. The release will test whether the company’s rapid earnings growth can continue supporting its enormous valuation.

Management previously forecast quarterly revenue of approximately $91 billion, plus or minus 2%. The guidance assumes no Data Center computing revenue from China.

Nvidia’s first-quarter revenue reached $81.6 billion, representing an 85% increase from the previous year.

Data Center revenue climbed 92% to a record $75.2 billion, while the company maintained a non-GAAP gross margin of 75%.

Investors will focus on Blackwell demand, the Vera Rubin product roadmap, spending by major cloud providers and Nvidia’s ability to preserve margins as memory and other component costs rise.

Because of Nvidia’s $5.3 trillion valuation, even a small change in revenue growth, margins or forward guidance could trigger another market-cap movement worth hundreds of billions of dollars.

NVDAB Tokenized Stock Follows Nvidia Lower

Nvidia Tokenized bStock, trading as NVDAB, followed the underlying Nasdaq-listed shares lower.

At the time of reporting, Binance priced NVDAB at approximately $219.59, representing a 2.94% decline over 24 hours.

The token’s reported 24-hour trading volume stood near $8.9 million, while its circulating market capitalization was approximately $9.8 million.

NVDAB can temporarily differ from NVDA because the token trades through separate cryptocurrency-market order books and remains available beyond regular US equity-market hours. Its displayed percentage also reflects a rolling 24-hour period rather than Nvidia’s change from the previous Nasdaq close.

Tuesday’s selloff does not by itself indicate that Nvidia’s AI growth story has broken. The more important evidence will arrive on August 26, when the company’s results reveal whether demand and profit margins remain strong enough to support its historic valuation.