"Nvidia's sterling armor was dented this month. After years of meteoric success, the chipmaker and its CEO Jensen Huang have increasingly found themselves playing defense - an unusual position for the company. Nvidia headed into the month with its stock price at an all-time high, bolstered by increasing AI spending from some of its major Big Tech customers like Meta, Microsoft, and Google."
"But over the course of the month, which saw Nvidia shed 11% of its value, the chipmaker has gone from smashing earnings and alleviating Wall Street's AI bubble fears to becoming the poster boy of what some analysts view as a company on an unsustainable path. Nvidia has also had to fend off short-sellers and the growing threat of Google, picking up some bruises along the way."
"Big names, including SoftBank and Peter Thiel, cashed out on the Wall Street darling that had became the world's first $4 trillion market cap company mere months ago. SoftBank announced it fully exited its Nvidia position, selling $5.8 billion in shares to bet on OpenAI. And while its CFO stressed it had "nothing to do with Nvidia itself," the move didn't exactly dispel the ongoing AI bubble talk."
Nvidia entered the month at an all-time high driven by rising AI demand from major tech customers and a strong GTC presence. The company reported third-quarter results on November 19 that exceeded analysts' expectations. Over the month Nvidia's stock lost roughly 11% amid renewed AI-bubble concerns, high-profile investor liquidations including SoftBank and Peter Thiel, short-selling pressure, and reports of a potential large Google chip deal. SoftBank exited its position, selling $5.8 billion in shares to bet on OpenAI. Nvidia faced growing competitive pressure from Google but recovered some losses after market volatility.
Read at Business Insider
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