Nvidia Stock Drops 5.5% with Worst Loss Since April as AWS Trainium Competes
Nvidia stock plunged 5.5%, its worst drop since April, dragging U.S. futures lower as Block cut 40% of its workforce citing AI efficiencies. Amazon’s AWS tested third-generation Trainium chips that double prior performance and claim up to 40% cost savings on AI model training, heightening GPU competition.
1. Nvidia Shares Record Worst Day Since April
Nvidia shares sank 5.5%, marking its steepest single-day drop since April, after another blowout profit quarter failed to excite investors and pulled U.S. stock futures down. The S&P 500 future fell 0.2% and the Dow Jones future lost 0.4%, reflecting broader market jitters.
2. Block Moves to Cut 40% of Workforce
Block, formerly known as Square, announced layoffs of about 4,000 employees—40% of its staff—attributing the reduction to labor-saving artificial intelligence tools. CEO Jack Dorsey stated the move will create a “smaller, faster, intelligence-native” company poised for greater efficiency.
3. AWS Unveils Third-Generation Trainium Chips
Amazon Web Services has begun testing its Trainium 3 AI-accelerator chips in Austin, Texas, claiming they double the performance of prior generations while cutting generative AI training costs by up to 40% compared with traditional GPUs. The custom chips are exclusively deployed in AWS data centers to support large-scale AI workloads.