Nvidia’s stock slid Thursday despite the US chip giant posting strong earnings, a reflection of the volatile nature of today’s AI trade.
The company’s quarterly revenue and projections both exceeded expectations, but investors remain skeptical about whether booming AI spending can be sustained.
A question mark also hangs over Nvidia’s China business, after the US government approved sales of the company’s H200 chips to Chinese customers, though it’s unclear if Beijing will sign off.
Largely, “emotions, not logic, [are] driving the stock market right now,” one strategist said.
Tech stocks have seesawed in recent weeks on concerns about the sky-high AI expenditures.
