Nvidia, the crown jewel of the AI hardware boom, has seen its stock take a severe hit this past week, shedding $406 billion in market capitalization. Over the last two weeks, the company’s valuation has plummeted by a fifth, sparking concerns among investors, particularly those with a conservative risk appetite.
While Nvidia has become synonymous with AI’s meteoric rise, this period of turbulence, as ironically noted by Bloomberg, has made even notoriously volatile Bitcoin seem more stable. In the past 30 days, Nvidia’s stock price has swung wildly between $90.69 and $131.26 per share. The biggest blow came last Tuesday, with Nvidia experiencing its worst two-week stretch in the past two years.
For comparison, Nvidia’s 30-day volatility was double that of Bitcoin and nearly quadruple Microsoft’s, reflecting just how unpredictable the company’s stock has been. A combination of investor anxiety over slowing revenue growth, delays in launching its next-gen Blackwell AI accelerators, and concerns over a potential antitrust lawsuit in the U.S. have contributed to this downturn. The uncertainty around Nvidia comes at a time when other semiconductor players like Broadcom are also struggling to meet financial expectations, signaling potential headwinds for the broader industry.
Still, Nvidia remains at the forefront of AI, and its long-term potential continues to attract patient investors who see its current slump as a buying opportunity. Experts from Wayve Capital Management highlight that while it’s challenging to pinpoint where the stock will bottom out, the long-term fundamentals of AI remain robust. For many, the current dip in Nvidia’s stock is merely a temporary setback in an otherwise promising growth trajectory.
This recent volatility underscores a key theme in the AI hardware market—while the potential rewards are immense, the road ahead is fraught with risk. As Nvidia navigates these turbulent waters, it will be critical to see how it adapts to both market pressures and the evolving regulatory landscape.