3
This earnings season has delivered plenty of good news for the artificial intelligence trade, but instead of bidding up Nvidia shares, investors have been dumping them.
Nvidia, whose graphics processing units, or GPUs, dominate the market for AI chips, has fallen 9% over the past six sessions after closing at a record high on April 27. Over that span, the stock is the third worst performer in the Philadelphia semiconductor index, which is up more than 5%.
The reason is that even as tech giants keep pledging to spend more on computing gear, Nvidia’s grip on the AI processor market is seen as increasingly under threat from other chipmakers as well as its biggest customers.
