Nvidia, a leading AI chipmaker, experienced an 8.5% drop in its stock price on Thursday, marking its sharpest decline in a month. The dip came despite the company reporting strong quarterly results, as they did not fully meet high investor expectations.
For the fiscal first quarter, Nvidia projected sales of around $43 billion, slightly surpassing the average analyst estimate of $42.3 billion but falling short of some forecasts as high as $48 billion. Concerns over slowing demand for AI chips, as data center operators adjust their spending, contributed to the stock decline.
The company also warned that profit margins could be tighter than expected due to the accelerated rollout of its next-generation Blackwell chip architecture. Additionally, potential challenges from U.S. tariffs may impact future earnings.
Nvidia has been a major beneficiary of the AI boom, with its stock soaring in 2023 and 2024, making it the most valuable chipmaker globally. However, 2025 has seen more cautious investor sentiment, with Nvidia’s stock already down 2.2% this year.
The AI industry as a whole is also facing uncertainty, as cost-efficient AI models—such as those developed by Chinese startup DeepSeek—raise questions about whether Nvidia’s high-powered chips will remain essential for future AI advancements.
Despite the recent stock decline, Nvidia continues to lead in AI computing, and its upcoming Blackwell chip is expected to play a significant role in shaping the future of AI technology.
