The American chip manufacturing giant Nvidia has lost nearly a trillion dollars of its market value in less than two months, after its share price fell to its lowest levels since the AI stock boom.

Bloomberg agency explained that the graphics processing units (GPUs) produced by the company dominate the AI data center market, but Nvidia's stock has dropped 16% since reaching its highest level on May 14.

The report indicated that this decline came as investors restructured their investments in AI companies, moving to competing semiconductor manufacturers, particularly those working in the memory chip market such as Micron Technology.

Bloomberg added that the sharp decline has made Nvidia's stock trade at 18 times expected earnings over the next twelve months, the lowest rate since early 2019, while the average price-to-earnings ratio of stocks listed on the S&P 500 is more than 20 times expected earnings, and exceeds 23 times for Nasdaq technology stocks.

For its part, the report stated that Nvidia's decline in value is not related to a drop in expectations about its earnings; on the contrary, Wall Street analysts have raised their expectations for the company's earnings in the coming quarters. This decline reflects a shift in the AI market towards other sectors, as the stock prices of competitors such as Advanced Micro Devices (AMD) and Intel have doubled once or even three times during the current year.