It appears that NVIDIA, seemingly free from the disappointment of its performance, plummeted nearly 10% on the first trading day of September 3rd (local time).

NVIDIA's stock fell by 9.5% that day, closing at $108.00. After announcing its earnings, NVIDIA's stock plummeted by 6.4% on August 29th, but it managed to rebound by 1.5% on August 30th, leading to the belief that it had shaken off the performance impact, only to see a larger drop.

The drop rate of NVIDIA on that day was the highest since the 10.0% plunge in April of this year. At one point, NVIDIA's stock fell by more than 10%, nearly setting a record for the highest drop since the 18.5% drop on March 16, 2020, but it narrowly avoided that fate.

As a result, NVIDIA's market capitalization vanished by $278.9 billion (approximately 1.9 trillion yuan) in just one day. This is the largest scale of market value destruction in a single day in the history of American companies, surpassing the $232 billion single-day market value evaporation that Meta Platforms achieved on February 3, 2022.

NVIDIA's drop rate on that day was the highest among the S&P 500 Index and the NASDAQ 100 Index.

Other semiconductor stocks also plummeted. AMD fell by 7.8%, Intel by 8.8%, and TSMC ADR (American Depositary Receipts) by 6.5%. Micron Technology and Analog Devices fell by 8.0% and 6.9%, respectively. Broadcom fell by 6.2%, Marvell Technology Group by 8.2%, and Qualcomm by 6.9% before their earnings announcements on the 5th of this month.

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On that day, the Ishares Semiconductor ETF (SOXX), which invests in the ICE Semiconductor Index, plummeted by 7.6%, marking the largest drop since the COVID-19 pandemic period on March 18, 2020. The Philadelphia Semiconductor Index fell by 7.8%, and the VanEck Semiconductor ETF also fell by 7.5%, marking the largest drop since March 18, 2020.

Barrons noted: "The decline in semiconductor stocks that day was not due to any particular topic, but rather a general market rotation sell-off." Historically, September is the worst month for stock market returns in the United States, so investors have shown a tendency to reduce their holdings in stocks that have seen significant gains this year before the release of several economic indicators. In particular, the August employment indicators announced on the 6th of this month have garnered high market attention.

Some analysts believe that investors have re-evaluated NVIDIA's performance announced after the close on August 28th, with the sales guidance not quite meeting expectations, leading to a reduction in NVIDIA's weighting.Tesla CEO Elon Musk warned that demand for Nvidia AI chips remains strong, but failed to boost Nvidia's stock price.

Musk said on social media platform X on the 2nd of this month that his AI startup xAI successfully built the Colorado AI training infrastructure online in just 122 days, with the cluster driven by 100,000 Nvidia H100 GPUs (Graphics Processing Units).

He also added that the cluster will become "the world's most powerful AI training system" and will integrate H200 chips within a few months, "doubling in scale".