Nvidia shares fell over 4% as the Nasdaq composite dropped 2.21% due to concerns about AI spending and rising interest rates. Outlook for the company’s AI division remains robust with projected revenue growth of 96% in the current quarter, while reports of banned AI chips doubling prices on China’s black market underscore potential supply risks.
Nvidia shares fell more than 4% as the Nasdaq composite dropped 2.21% on heightened concerns about AI spending sustainability and rising interest rates, marking one of the steeper single-session declines for the stock this quarter.
Investors remain focused on Nvidia’s AI division, which posted 85% year-over-year growth last fiscal year and is forecasting 96% revenue expansion in the current quarter, contributing to its over $250 billion in annual revenue.
Reports indicate Nvidia’s recently banned AI chips have resurfaced on China’s black market, with prices doubling, highlighting potential supply constraints and regulatory risks that could affect the company’s hardware sales in the region.
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