Nvidia stock slides amid AI spending slowdown fears, increased competition

Published On Dec 17, 2024, 10:39 AM

Nvidia's stock has dropped over 2% amidst worries of a slow down in AI spending and rising competition from other tech firms like Amazon and Broadcom. After reaching an all-time high in early November, Nvidia's shares have retreated about 14%. Key concerns are remarks by major players like Microsoft and Google indicating their AI spending may not grow as rapidly in the future, along with competition stepping up, especially from Amazon's new AI chips. Antitrust scrutiny from China over Nvidia’s acquisition moves adds another layer of uncertainty. Despite these challenges, some analysts believe the fears of a slowdown may be exaggerated, though growth rates for 2025 and beyond are expected to decelerate significantly.