Nvidia's stock has fallen 18% from its 52-week high following a broad AI chip sell-off, despite reporting revenue growth of 85% year-over-year and data center revenue surging 92%. Valuations remain elevated while potential decelerations in AI infrastructure spending pose risks to future performance.
Nvidia shares have retraced 18% from their 52-week high amid a sector-wide AI chip sell-off, reflecting broader market concerns over growth sustainability and near-term demand fluctuations.
Despite the share decline, Nvidia reported an 85% year-over-year revenue increase for the latest quarter, driven largely by robust enterprise and cloud spending on AI solutions.
Nvidia's data center unit posted a remarkable 92% year-over-year revenue gain, fueled by accelerated deployment of AI-optimized GPUs in hyperscale and enterprise datacenters.
Analysts note Nvidia's current valuation multiples remain high relative to historical averages, and warn that any slowdown in AI infrastructure investment could temper future upside.
