Think you had a bad day? It’s nothing compared to the drop Thursday by S&P 500 stock Nvidia.

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Shares of the AI poster child dropped 3.5% Thursday. That might not sound like much until you consider what that means for a company valued at $3.2 trillion. In just one day, the company lost $118 billion in market value, says an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge.

That’s more than 421 companies in the S&P 500 are worth individually — or 85% of the index. It’s almost like a United Parcel Service (UPS) or Citigroup (C) vanished overnight.

The magnitude of Nvidia’s drop underscores just how richly valued AI stocks have become in the S&P 500. “Extreme AI enthusiasm and very large stocks are driving multiples, with the rest of the market seeing a very different valuation,” said Bespoke Investment Group.

Top-Heavy Market

Now that three S&P 500 stocks are worth $3 trillion or more, there’s concern the index is largely in the control of a small number of stocks.

Just three stocks, Nvidia (NVDA), Microsoft (MSFT) and Apple (AAPL), account for roughly a fifth of market-weighted S&P 500 ETFs. And that massive one-day plunge of Nvidia highlights the risk of such concentration.

Amazingly, Nvidia’s fall comes at a time no one can find faults with the stock. Analysts think the company will earn $2.71 a share this fiscal year, up more than 108% from last fiscal year.

And most rate the stock a buy, too. If there’s any worry, the average 12-month price target is 129.38 a share, roughly the same as it is now.

But for now, the direction is up until it isn’t. And when it isn’t, every investor will know it.

Nvidia’s Big Loss

S&P 500 companies worth less than Nvidia’s June 20 $118 billion drop

Sources: IBD, S&P Global Market Intelligence