Search
On February 26, NVIDIA (NVDA.O) shares dropped 5% in early trading on Thursday, weighing on major U.S. stock indices. Despite closing at a three-month high on Wednesday, the positive earnings failed to boost investor confidence, with growing concerns over returns on massive investments in the artificial intelligence (AI) sector. Investors are beginning to question whether NVIDIA's record growth can be sustained, as competitors launch new AI accelerators, major corporations invest in custom chips, and the overall spending cycle in the AI sector becomes more uneven. Analysts from JPMorgan pointed out that investors still seek more information, noting uncertainty surrounding the growth prospects of NVIDIA's data center business in fiscal 2027, particularly given the significant increases in capital expenditure budgets among major clients.
-
C114 Communication Network -
Communication Home
