NVIDIA Falls 5%, Concerns Rise Over Its Spending Returns and Sustainability of Growth Momentum

Odaily News NVIDIA (NVDA.O) fell 5% in early trading on Thursday, dragging down major U.S. stock indices. The stock had closed at a three-month high on Wednesday. Its optimistic earnings failed to boost investor sentiment, as a growing number of investors express concerns about the returns from massive investments in the artificial intelligence sector. This market reaction reflects increasing focus on whether NVIDIA's record-breaking growth momentum can be sustained. This is because competitors are launching new AI accelerators, large enterprises are investing in custom chips, and the overall spending cycle in the AI field has become more uneven. Analysts at JPMorgan stated in a report: "This widespread reaction indicates that investors still hope for more information. We believe this is related to the ongoing uncertainty surrounding the growth prospects of NVIDIA's data center business for fiscal year 2027, especially considering the significantly increased capital expenditure budgets of major customers." (Jin10)