Nvidia Stumbles: NVDA Tanks 4% as Market Questions AI Hype
Another bad day for the chipmaker—Wall Street’s favorite AI darling just got a reality check.
What happened? Nvidia shares took a nosedive Wednesday, closing nearly 4% lower as profit-takers swarmed and semiconductor stocks showed weakness across the board. The dip comes despite another record quarter—because in today’s market, even stellar earnings can’t save you from the fickle whims of traders chasing the next shiny object.
The cynical take: When even Nvidia isn’t bulletproof, maybe the ’AI revolution’ narrative needs a software update. Or maybe hedge funds just needed liquidity for their new crypto positions.
Source: Investopedia
Nvidia Falls Again This Week as Market Conditions Continue to Take Its Toll
The US stock market has been through a tough go this week as Wall Street attempts to maneuver around ongoing predicaments and uncertainty. For the first time since 2022, the economy has contracted, with US President Donald Trump’s first 100 days being detrimental to the market.
That has been only part of the story for Nvidia, as the tech giant fell as much as 4% on Wednesday with the stock market dipping yet again. Specifically, the drop had a lot to do with one of its biggest customers. Moreover, it is still forced to contend with ongoing chip restrictions that the Trump administration is looking to introduce.
According to a report, Nvidia customer Super Micro Computer (SMCI) has cut its revenue and profit outlook for Q3. Moreover, the decision affects NVDA because it uses those designs for its data center operations. The decision reflects a wider pullback from AI infrastructure demand amid the current market sentiment.
Super Micro stock fell 18% early Wednesday as news hit. Now, Nvidia has dropped firmly below the $110 level, as the stock has continued its 23% fall over the last six months. It still holds a $160 median price target for the next year’s outlook, with experts still believing in its 50% upside.
