Nvidia stock sinks on fears of AI slowdown, possible shipment delays

Published On Oct 31, 2024, 2:51 PM

Nvidia's stock fell nearly 5% due to concerns over a potential slowdown in AI spending and possible delays in shipments of its AI chips. These worries were exacerbated by Microsoft’s recent earnings report, where they indicated that these delays hindered their AI cloud business growth. The semiconductor industry as a whole faced declines, with Nvidia's rivals like AMD and Qualcomm also experiencing stock price drops. Investors are cautious about the future demand for AI-related products as there are speculations that spending might not grow at the same pace as before. Despite the short-term fears, Nvidia is expected to report strong Q3 results on November 20, with significant projected increases in earnings and revenue.