Nvidia (NVDA) stock down 10% from highs, in correction territory

107389328 1710851830337 gettyimages 2087339921 AFP 34LQ6BG

107389328 1710851830337 gettyimages 2087339921 AFP 34LQ6BG

Nvidia founder and CEO Jensen Huang presented products at the annual Nvidia GTC Conference in San Jose, California on March 18, 2024. Chipmaking giant Nvidia has seen its shares enter “correction territory,” dropping 10% from all-time highs. The company, known for its graphics processing units (GPUs), has benefitted from the AI boom, which increased the demand for its chips in compute-intensive AI applications and data centers. Despite a remarkable financial performance with a 486% increase in non-GAAP earnings per share in the December quarter, the stock has faced pressure recently, closing at $853.54 on Tuesday. The reason for the drop is unclear, but investors might be taking profits after a significant gain in share price over the past year. Intel’s unveiling of a new AI chip called Gaudi 3 has also impacted Nvidia, with analysts predicting a decrease in demand for Nvidia’s stock due to advancements in AI technology. The overall outlook for Nvidia’s future could face challenges in the coming years.

Nvidia, a chipmaking giant known for its graphics processing units (GPUs), has seen its shares enter “correction territory,” with a 10% drop from all-time highs. The company has benefited from the artificial intelligence boom, which has increased demand for its chips in compute-intensive AI applications and data centers. Despite reporting a 486% increase in non-GAAP earnings per share in the December quarter, the stock has faced pressure in recent weeks, with shares down 1% in U.S. premarket trading. The reason for the decline is unclear, but some speculate that investors may be taking profit after significant gains in the last year. Additionally, the unveiling of a new AI chip by rival Intel could impact Nvidia’s market share in the AI space. Analysts predict a potential downturn for Nvidia in the future due to factors such as shrinking AI models and increased competition.

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