Nvidia Stock Plunges 5%, $800 Billion Lost: AI Hype Fades Amid Rising Competition
Nvidia's stock plummeted 5% in a single trading session, erasing $800 billion in market capitalization since Monday. The decline reflects growing investor skepticism about the sustainability of AI-driven growth, once the cornerstone of Nvidia's valuation.
Competitive pressures are mounting as AMD and other rivals challenge Nvidia's dominance in AI chips. Major tech firms are now developing in-house solutions, further disrupting the landscape. "The competition is getting fiercer, and Nvidia is facing stronger challenges," observed a tech industry analyst.
Potential export restrictions add another LAYER of uncertainty, threatening Nvidia's global supply chain. The market appears to be recalibrating its expectations for AI-related stocks, with Nvidia bearing the brunt of this shift.
