Nvidia posted $68 billion in revenue last quarter, up 73 percent from a year earlier, but missed market expectations and its shares are falling, CNBC reported on Feb. 27.
It has secured a dominant share of the AI chip market, but intensifying competition and the possibility of reduced capital spending by tech companies are seen as key reasons for the share decline. OpenAI signed a 2-gigawatt AI chip deal with Amazon Web Services, moving to reduce its reliance on Nvidia. Meta is also adopting AMD Instinct GPUs and working with Google as it actively explores the use of alternative chips to Nvidia.
Nvidia is trying to maintain its lead in the AI market with its next-generation Vera Rubin GPUs, but analysts forecast its growth rate will slow to 30 percent, 13 percent and 14 percent over the next three years.
Amid these market shifts, Nvidia shares are down 16 percent so far this year, and some analysts see that as a buying opportunity, CNBC reported. Jefferies analysts said, "We do not know when investment sentiment toward AI stocks will recover, but Nvidia shares are getting cheaper and will eventually rebound."
Chi-gyu Hwang
delight@d-today.co.kr