Nvidia Shares Drop 4% While AI Revenues Soar 85% and Black Market GPUs Double
NVDA•Nvidia's share price fell over 4% on June 23 during a tech sell-off spurred by concerns over rising interest rates and AI spending. AI revenues grew 85% year-on-year last quarter with 96% growth projected next quarter, and banned GPUs in China are selling for twice their official price.
1. Tech Sell-Off Hits Nvidia
Nvidia's share price fell over 4% on June 23 due to broader tech sector weakness driven by concerns over rising interest rates and AI spending pressures.
2. Strong AI Revenue Growth
The company reported AI revenues up 85% year-on-year in the last quarter, with projections of 96% growth in the current quarter reflecting robust data center demand.
3. Black Market GPU Prices Surge
Banned Nvidia AI chips in China are trading at twice their official price on the black market, highlighting persistent supply constraints and elevated global demand.
4. Ongoing Valuation Debate
Investors are balancing near-term volatility and rate headwinds against Nvidia’s accelerating AI business and strong growth forecasts when assessing its valuation.
