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Nvidia (NASDAQ:NVDA) is taking another hit, down 4.80% to $111.67 as of 13:18 ET, as investor concerns over AI demand keep mounting. The stock has now dropped 16.6% year-to-date and more than 20% in the past three months, marking its worst monthly performance since July 2022.
So, what's going on? Analysts point to growth fears, supply chain bottlenecks, and regulatory risks dragging the stock lower. Bernstein's Stacy Rasgon even noted that sentiment around AI stocks has clearly shifted, signaling that investors might be rethinking their expectations.
Meanwhile, Futurum Group's David Nicholson told Yahoo Finance that Wall Street is starting to realize Nvidia won't be the next Intel (NASDAQ:INTC) dynasty. Adding to the pressure, Microsoft (NASDAQ:MSFT) cut ties with CoreWeave, and Marvell Technology (NASDAQ:MRVL) reported disappointing earningsboth of which haven't helped Nvidia's case.
With big tech set to pour over $300 billion into AI this year, some analysts are asking: Can this level of spending continue without solid returns? For now, Nvidia investors seem to be erring on the side of caution.
This article first appeared on GuruFocus.