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

Published On Oct 31, 2024, 2:51 PM

Nvidia's stock dropped nearly 5% amid concerns about a potential slowdown in AI spending and possible shipment delays of its AI chips. The decline follows Microsoft’s report of delayed shipments of Nvidia GPUs affecting its AI cloud business, leading to worries about capital expenditures in AI growth among major tech companies. Other semiconductor stocks, including AMD and Qualcomm, also saw drops. Nvidia's earnings report due on November 20 is anticipated, with analysts predicting strong growth in earnings and revenue.

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Negative

Nvidia's stock is negatively impacted by fears of reduced demand and delivery issues in the AI sector. With slower growth in AI-related spending already hinted by Microsoft, investor sentiment may continue to be cautious until clearer trends emerge post-earnings report.

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