AI News: NVIDIA Stock Falls To 2-Month Low As Hype Blows Over

Godfrey Benjamin
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Nvidia Stock AI Coins

Highlights

  • Nvidia is nosediving with the stock losing $1 trillion in weeks
  • Many consider the slow-down in NVDA growth a sign of shifting landscape
  • The election season may determine how the AI ecosystem responds in coming months

After reigning consistently as the most capitalized company, Nvidia (NVDA) has seen its stock value drop to a two-month low. Within five weeks, the Artificial Intelligence (AI) and chip manufacturer lost $1 trillion from its stock market cap, with every one of those weeks seeing a loss of $200 billion.

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The Nvidia Performance To Date

Accordingly, the AI giant has lost approximately 27% of its previous All-Time High (ATH). This loss compared to Tesla’s entire value is 1.5 times bigger and equal to the total market cap of Berkshire Hathaway. Noteworthy, NVDA’s current woe did not come from a single event. Rather, it resulted from a pile-up of small trends one of which is the general dip across semiconductor stocks.

The performance of NVDA also mirrors that of Bitcoin (BTC) with more than 11% loss from its ATH.

President Donald Trump’s hawkish commentary on trade and defense policies in East Asia fueled this incident. The said region is important to American chip makers, especially as it has to do with manufacturing and sales.

It’s not news that a stock faces a decline after an extended period of gains. This is because investors and fund managers begins to cash in on their profits and adjust their portfolios. In the meantime, NVDA remains up by 110% year-to-date and 610% compared to the end of 2022.

At this level, the stock is delivering truly eye-popping returns for a company of its size.

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Can AI, Macroeconomics, and Politics Changes Shift The Trend?

The semiconductor company is likely the clearest victim of the broader market’s rollout of big technology companies into lagging smaller firms especially with investors preparing for the first interest rate cuts since 2020.

Noteworthy, the anticipation for this interest rate cut is growing and former Federal Reserve Vice Chair Roger W. Ferguson has projected US Fed rate cut in September. The slowdown of inflation and consumer prices has informed this prediction.

On the other hand, the AI landscape has seen the launch of some new tools including OpenAI’s SearchGPT.

The popular AI firm introduced a new search engine that is likely to compete with Google last week. In the meantime, it is still in the beta testing phase and OpenAI plans to compete the process with a small group of users and publishers for now, with the hope that they provide feedback to refine the tool before integrating it into ChatGPT.

In all, the Nvidia sentiment hinges also on the election season. As the Kamala Harris and Donald Trump rivalry wages on, the AI market will decide which candidate is good for the industry in due course.

Read More: Ripple SEC Lawsuit: Lawyer Bets On Ruling Date In Remedies Phase

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.