The market value of Nvidia Corp., the globally renowned chipmaker, has plunged by a staggering $279 billion, marking a historic loss amid a broad sell-off on Wall Street.

This sharp decline occurred as investors reassessed the hype surrounding artificial intelligence (AI) and semiconductor stocks, leading to a significant shake-up in the NASDAQ Composite tech index.

Nvidia's drop in market capitalization highlights growing investor uncertainty about the sustainability of the AI-driven rally that had boosted tech stocks in recent months. The sell-off was further fueled by concerns over Federal Reserve interest rate policies and potential economic slowdown, resulting in increased volatility across the stock market.

Nvidia shares tumbled nearly 12% in a single day, marking a dramatic reversal for the company, which had been one of the biggest beneficiaries of the AI boom. The decline reflects broader market skepticism about the valuation levels of companies heavily investing in AI and semiconductor technologies. Nvidia, in particular, had been at the forefront of this rally due to its dominance in AI-related graphics processing units (GPUs), which are critical for powering AI models and applications.