Nvidia shares fall more than 6% as investors abandon chip heavyweight. (Reuters/Reuters)

Nvidia (NVDA)

Nvidia has lost more than $500 billion (£433 billion) in market value since briefly becoming the world’s most valuable company last week after shares fell nearly 7% on Monday and were in the red during pre-trading hours.

Many investors are believed to be taking profits following the semiconductor maker’s rising valuation.

David Morrison, senior market analyst at Trade Nation, said: “Some profit taking seems entirely reasonable given NVIDIA’s meteoric rise. Shares are up more than 180% this year alone. But if it continues to lose ground, there is a danger of contagion, with sales spreading to other big names in technology. If that were the case, then the market could face a deeper and more prolonged pullback.

“However, there is little evidence that investors are thinking along these lines.”

Another factor weighing on Nvidia is that CEO Jensen Huang has been selling shares this month through a trading plan. This drew attention to whether the shares were somewhat overvalued.

See more information: FTSE 100 LIVE: European shares open mixed as $550 billion wiped from Nvidia

Richard Hunter, head of markets at Interactive Investor, said: “The stellar rise of technology-related stocks and AI, in particular, inevitably reaches the stage where investors take a breather and recalculate valuation levels.”

The AI ​​darling recently became the third company to reach a market valuation of over $3 trillion, surpassing Apple (AAPL) and Microsoft (MSFT) to become the most valued company in the world.

Its market capitalization has now fallen to $2.91 billion (£2.29 billion).

Outflows from US Bitcoin exchange-traded funds (ETFs) have reached $1.3 billion over the past two weeks as the cryptocurrency’s price continues to fall.

Bitcoin is stable above $61,000 after falling as low as $59,200 during the early hours of Asian trading. The digital asset fell 11% in June but remains up 42% year-to-date, with gains largely concentrated around the approval of the ETF.

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However, according to data from Farside Investors cited by cointelegraphtotal outflow from Bitcoin ETFs reached $1.298 billion in the last two weeks of trading, with Grayscale leading outflows at $517.3 million over the same period.

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BlackRock’s Bitcoin ETF was the only fund to post positive results, bringing in $43.1 million in inflows over the past two weeks.

Not only is Bitcoin under pressure due to cooling demand for its ETFs, but there is also growing uncertainty about whether the US Federal Reserve will quickly reduce interest rates from a two-decade high.

Crypto analysts are giving a 14% chance of Bitcoin recovering to $65K by the end of the week.

Trump Media & Technology Group Stock are higher in pre-market tradingahead of Thursday’s debate between President Biden and former President Donald Trump.

Trump Media shares are up 21%, currently trading at $33.70 per share. The stock closed Friday at just over $27.

The company behind Truth Social has seen its stock price fall nearly 50% in the roughly three weeks since a New York jury found Trump guilty of 34 criminal counts of falsifying business records.

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Trump owns 114,750,000, or about 64.9%, of the company’s shares. He will not be able to sell any of his shares until the end of September, when the post-merger lock-up period expires.

Airbus shares fell more than 10% in morning trading after the planemaker cut its annual profit forecast due to persistent supply chain disruptions and challenges in its space business.

The manufacturer expects to deliver 770 aircraft this year – down from a previous forecast of 800 – while its monthly production target of 75 A320neos has fallen from 2026 to 2027.

Airbus said it faces “persistent” and “specific” supply chain issues, mainly affecting engines, aerostructures and cabin equipment.

It is also charging 900 million euros for its space systems, after discovering “other commercial and technical challenges”.

As a result, the aerospace and defense group now expects adjusted earnings before interest and taxes of €5.5 billion this year, down from a previous forecast of up to €7 billion.

“This may not have much impact on airlines, which have already indicated that Airbus has reduced scheduled deliveries. But aircraft manufacturing is proving complicated – just ask Boeing,” said Neil Wilson, chief market analyst at Finalto.

“Demand is not the problem; quite the opposite. But if supply can’t keep pace and competition is so limited, that should mean that airline capacity doesn’t increase much, which could keep fares higher for more time.”

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