From Nasdaq: 2024-08-02 12:44:04

Nvidia (NASDAQ: NVDA) stock has more than doubled this year, but has dropped over 20% in the last six weeks due to a sector rotation away from growth tech stocks. Economic concerns were further fueled by a lower-than-expected July jobs report, raising fears of a potential recession.

Recent reports from tech giants like Amazon, Apple, Microsoft, Meta Platforms, and Alphabet highlighted increased capital spending on expanding artificial intelligence (AI) platforms. This news, while not surprising to Nvidia followers, contributed to the recent sell-off of Nvidia stock as investors worry about competition and slowed sales growth.

Alphabet, Microsoft, and other tech companies saw year-over-year increases in quarterly capital expenditures, with a focus on AI products and services. Despite concerns about competition, Nvidia is expected to support much of this spending and benefit as demand for advanced chips grows, potentially easing investor worries.



Read more at Nasdaq: Why Nvidia Stock Kept Tumbling on Friday