Nvidia Corp. shares entered correction territory on Monday as a persistent selloff erased a historic amount of value for the AI-focused chipmaker. The stock fell 6.7%, marking its third consecutive negative session and the largest one-day percentage drop since April. This three-day decline wiped out approximately $430 billion from Nvidia’s market capitalization, representing the largest three-day value loss for any company in history, according to Bloomberg data.

Over this period, Nvidia shares fell 13%, surpassing the 10% threshold that signals a correction. The decline also impacted other chipmakers, with the Philadelphia Stock Exchange Semiconductor Index dropping 3% on Monday. Notable declines included Broadcom Inc. falling 4%, Qualcomm Inc. dropping 5.5%, and ARM Holdings Plc slumping 5.8%. US-listed shares of Taiwan Semiconductor Manufacturing Co. shed 3.5%. This downturn reduced Nvidia's valuation below the $3 trillion mark, placing it behind both Microsoft Corp. and Apple Inc. after briefly becoming the world's largest stock last week. Despite the recent slump, Nvidia is still up nearly 140% this year, making it the second-best performer among S&P 500 Index components, just behind Super Micro Computer Inc. The stock's rally, driven by high demand for its AI processing chips, has sparked concerns about its valuation, as it trades at 21 times estimated sales over the next 12 months, the highest in the S&P 500.