Nvidia drops 5%, concerns persist over its return on investment and growth momentum

Odaily Planet Daily News: Nvidia (NVDA.O) dropped 5% in Thursday’s early trading, dragging down major U.S. stock indexes. The stock closed at a three-month high on Wednesday. Its optimistic earnings failed to boost investor sentiment as more investors express concerns about the returns from large-scale investments in artificial intelligence. This market reaction reflects growing attention to whether Nvidia’s record-breaking growth can continue. As competitors launch new AI accelerators, large companies invest in custom chips, and the overall AI spending cycle becomes more uneven. JPMorgan analysts stated in a report, “This widespread reaction indicates that investors still want more information. We believe this is related to the uncertainty surrounding Nvidia’s data center business growth prospects in fiscal 2027, especially considering the significant increase in capital expenditure budgets from major clients.” (Jin10)