Nvidia stock sinks on fears of AI spending slowdown

Published On Oct 31, 2024, 2:51 PM

Nvidia's stock dropped nearly 5% amid concerns about a potential slowdown in AI spending and delivery delays of its AI chips. This decline reflected broader woes in the semiconductor sector, which saw the PHLX semiconductor index plummet over 4%. Microsoft indicated in its earnings report that delayed shipments of Nvidia’s GPUs are hindering its AI cloud business. Analysts are expressing fears that investment in AI among major tech firms may not continue to grow at the same pace, further pressuring Nvidia's prospects leading up to its earnings report on November 20.