Expert explains the fall of Nvidia, considered the world’s most important stock.

The world’s biggest tech companies have invested billions of dollars into Nvidia’s AI chips. Wall Street has declared the California-based AI chip-maker, led by CEO Jensen Huang, to be the world’s most important stock.

However, the company saw a four percent fall in its share price in after hours trading. These tech giants, including Microsoft, Google, Meta, Tesla, and Amazon, have been investing tens of billions of dollars into Nvidia’s powerful AI chips and software.

They aim to utilize this technology to train generative AI models and execute heavy computing workloads. Nvidia’s share price was up about 160 per cent year-to-date ahead of the latest earnings and accounted for a third of the broad-based S&P 500 index’s gains.

Despite fluctuations in investor sentiment, Nvidia’s share price has been historically strong, indicating its significant value in the market. The company’s recent financial results, beating expectations with impressive margins, have continued to grab the attention of Wall Street.

Although the market had high sales expectations of about $28 billion, Nvidia delivered with a forecast of next quarter’s revenue at about $32.5 billion. While this forecast exceeded the average of analyst predictions, some observers were disappointed, suggesting that the days of triple-digit growth may be over.

Investor focus also turned to potential delays in Nvidia’s new generation Blackwell line of technology, the successor to the best-selling Hopper line of AI chips. However, CEO Huang provided assurance that the new product line would ship at scale to clients in the coming months.

*This story has not been edited by NDTV staff and is published from a syndicated feed. *