Home / Business and Economy / Nvidia Loses $470 Billion in Market Value as Broadcom Challenges AI Dominance
Nvidia Loses $470 Billion in Market Value as Broadcom Challenges AI Dominance
6 Sep
Summary
- Nvidia stock falls 3.5% as Broadcom partners with OpenAI on AI chip
- Broadcom's market cap jumps $150 billion, reaching $1.6 trillion
- Nvidia remains the largest company, but faces growing competition in AI hardware
On September 6, 2025, Nvidia Corp. experienced a significant drop in its stock price, with the chipmaker at risk of losing its historic $4 trillion valuation for the first time in nearly two months. The decline came as Broadcom Inc. announced it is helping OpenAI design and produce an artificial intelligence accelerator chip, making Broadcom a more direct competitor to Nvidia, the current leader in AI hardware.
Nvidia's stock fell 3.5% to $165.58, resulting in a market capitalization of just over $4 trillion. In contrast, Broadcom's shares jumped as much as 16%, hitting an intraday record high and adding nearly $150 billion to its market capitalization, bringing it to roughly $1.6 trillion.
While investors should prepare for Nvidia facing more competition in the AI market, industry experts believe the company can still maintain consistent growth due to the rapid expansion of the AI sector. "I view this as a knee-jerk reaction, not a reason to sell," said Jim Awad, senior managing director at Clearstead Advisors. "We will need to watch how Broadcom and OpenAI execute going forward, but no one is going to take away Nvidia's business in an instant."
With the recent decline, Nvidia has dropped about 10% off an August peak, representing almost $470 billion of erased market value. The company has also fallen below its 50-day moving average, although it still remains the largest company in the world, with Microsoft Corp. in second place.
