Meta, the parent company of Facebook, continued to fall on Tuesday, and the stock has now fallen so far in the last week that it is now valued less than chipmaker Nvidia. The price of Meta decreased 2.1 percent to $220.18. The stock has dropped 35% this year and is now at its lowest level since July 2020.
Facebook was formerly one of the top five most valuable firms in the United States, with Big Tech rivals Apple, Microsoft, Amazon, and Alphabet. Meta has since dropped to ninth place, behind Tesla, Berkshire Hathaway, and, for the first time, Nvidia.
Nvidia Corporation is a worldwide technology firm based in Santa Clara, California, that was founded in Delaware. It creates graphics processing units (GPUs) for gaming and professional applications, as well as system on a chip (SoCs) for mobile computing and automotive applications. Its principal GPU line, dubbed “GeForce,” competes directly with Advanced Micro Devices’ “Radeon”-branded GPUs (AMD). With its mobile game consoles Shield Portable, Shield Tablet, and Shield Android TV, as well as its cloud gaming service GeForce Now, Nvidia has increased its position in the gaming sector. Workstations with its professional GPUs are utilized in sectors including architecture, engineering, and construction, media and entertainment, automotive, scientific research, and manufacturing design.
On Tuesday, Meta’s market cap plummeted to $599 billion, while Nvidia closed at $627 billion. Visa is the second largest company, with a market capitalization of $478 billion. Nvidia announced yesterday that it will no longer pursue Arm’s chip technology and would pay a $1.26 billion breakup fee to SoftBank, the company’s parent. Nvidia cancelled the deal due to a slew of regulatory issues, including an inquiry in the United Kingdom. as well as a lawsuit from the United States The FTC is the Federal Trade Commission.
Nvidia climbed 1.5 percent to $251.08 on Tuesday. The stock has been on a run for the past two years, with a gain of over 300 percent since the beginning of 2020. Investors have sold out of riskier tech companies, causing the company to lose nearly 15% of its value since the beginning of the year. Strong chip sales have bolstered Nvidia’s fourth-quarter earnings, which will be released next week. Its graphics processors are in great demand for artificial intelligence applications and complex video games.
Meta, on the other hand, has been losing ground since last week’s fourth-quarter results announcement. Apple’s privacy improvements have caused a dip in user numbers, and the corporation has cautioned about the challenges that lie ahead. The stock fell a record 26% on Thursday after Meta’s first-quarter outlook fell short of expectations.