Nvidia stocks have dropped by over 2% due to concerns about AI spending. Microsoft and Google announced slower expansion of AI expenditures, and rumors of Blackwell AI servers overheating have fueled further decline. China's competition regulator is investigating Nvidia's purchase of Mellanox, adding to complications. The competition is intensifying, as Amazon and Broadcom announce plans for their own AI chips. Some of Nvidia's major clients are also developing their own AI processors in-house. There are fears that the return on AI investments for big tech businesses is not meaningful, as their expenses continue to rise. Fears, uncertainty, and doubt (FUD) are contributing to the decline in Nvidia's market value. Despite this, Wall Street analysts are optimistic about the stock and predict significant growth. Analysts anticipate Nvidia's net income to increase to $102 billion by January 2026. Nvidia is expected to generate $62 billion in free cash flow, with a significant portion allocated for share buybacks. Bernstein analysts view Nvidia as a "top pick" in the sector and predict a successful year in 2025. Despite positive earnings, Nvidia's stock remains under pressure, but some analysts believe its market value could reach $4 trillion by 2025.



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