Tech analyst Gene Munster argues AI will have a “bigger impact” on humanity and investments than the Internet, even as Nvidia's market cap falls nearly $300 billion, dragging the Nasdaq down more than 3% – NVIDIA (NASDAQ:NVDA)

Deepwater Asset Management managing partner Gene Munster remains optimistic about the transformative potential of AI, even as Nvidia Corp. NVDA Market capitalization plummeted by nearly $300 billion, dragging down Nasdaq fell more than 3%.

What happenedOn Tuesday, Munster contacted unknownpreviously Twitterand said he still believes in the long-term impact of AI, despite short-term market fluctuations.

The analyst first commented on the unfortunate timing of his earlier statement during an appearance on CNBC, where he said tech stocks would likely continue to rise in September.

However, the Nasdaq ended up falling 3.3% on the same day, a rarity as it was only the eighth time in the past 500 trading days that the index fell more than 3%, Munster noted.

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“I cringe at trying to predict what the market will do in the near term. That said, AI fundamentals are the most important to what the market will do in the next 3-5 years,” he posted.

“I still believe that AI will have a bigger impact on our lives and investments than the Internet.”

Why is it important?:Nvidia's market cap drop comes after the company's second-quarter earnings report in which it beat profit and revenue expectations, but investors pulled back in the aftermath: its stock price fell roughly 10% in a single day, resulting in a $300 billion wipeout of the chipmaker's market cap.

This was part of a broader market decline, with the Dow Jones sliding 1.5% and the Nasdaq falling by 3.3%.

On the same day, the Jensen HuangThe Google-run company also received a subpoena from the US Department of Justice as it stepped up its investigation into possible antitrust violations by the AI ​​computing giant.

Price Action: At the time of writing, in after-hours trading, Nvidia shares are down 2.41% to $105.40. The tech giant closed Tuesday's session at $108, down 9.53%, according to the report. Data from Benzinga Pro.

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Disclaimer: This content was partially produced with the help of artificial intelligence tools and was reviewed and published by Benzinga editors.

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