Nvidia (NASDAQ:NVDA) enters correction territory, losing $400B in market value

Nvidia Corp. (NASDAQ:NVDA) shares declined sharply on Monday, entering correction territory as the AI-focused chipmaker extended its recent selloff.

The stock dropped 4.8%, marking its third consecutive negative session and bringing its total decline to 12% over the past three days, surpassing the 10% threshold that defines a correction.

This significant drop has had a broader impact on the semiconductor sector, with the Philadelphia Stock Exchange Semiconductor Index falling by as much as 2.2% on Monday.

Other major chipmakers, including Broadcom, Taiwan Semiconductor Manufacturing Co., and Qualcomm, also saw their shares decline by at least 2%.

The three-day selloff erased over $400 billion from Nvidia’s market capitalization, pushing it below the $3 trillion mark and causing it to fall behind Microsoft Corp. (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) in market value.

Nvidia briefly held the title of the world's largest stock last week before this downturn.