Nvidia’s Stock Pullback Amid AI Growth Concerns
Nvidia shares have retreated 17% from their October peak of $212.19, closing at $175.02 as investors scrutinize the sustainability of AI-driven growth. The chipmaker remains a dominant force in AI infrastructure, with its Blackwell GPUs sold out and data center revenue surging 66% to $51.2 billion.
Third-quarter revenue jumped 62% year-over-year to $57 billion, outpacing previous growth rates. CEO Jensen Huang emphasized unprecedented demand for cloud GPUs, but valuation concerns persist at 43 times earnings. Export restrictions to China and rising competition in custom chips loom as potential headwinds.
The AI boom continues fueling Nvidia's data center business, though cyclical industry patterns and questions about ROI on AI investments weigh on market sentiment. Fourth-quarter revenue guidance of $65 billion suggests the growth story remains intact despite recent share price weakness.
