Nvidia Shares Drop Amid Investor Concerns Over AI Investments

Nvidia's shares fell by 5% during early trading on Thursday, impacting major U.S. stock indices. According to Jin10, this decline followed a three-month high closing price on Wednesday. Despite optimistic performance results, investor sentiment was not boosted, as concerns grow over the returns from substantial investments in artificial intelligence. This market reaction highlights increasing scrutiny over Nvidia's record growth momentum, especially as competitors introduce new AI accelerators and large corporations invest in custom chips, leading to a more uneven spending cycle in the AI sector. A report by JPMorgan analysts noted that this general reaction indicates investors are still seeking more information. They believe this is related to uncertainties surrounding the growth prospects of Nvidia's data center business in the fiscal year 2027, particularly given the significant increase in capital expenditure budgets by major clients.