From Nasdaq: 2025-04-02 00:22:00

Nvidia stock (NASDAQ:NVDA) has dropped about 5% in the last week and remains down by close to 11% over the past month. China’s energy-efficiency rules for advanced chips, resellers in the gray market, and data center demand concerns have contributed to the sell-off.

China’s National Development and Reform Commission has introduced energy-efficiency rules for advanced chips used in data centers, impacting Nvidia’s H20 chip. Resellers in the gray market are allegedly using entities outside China to purchase Nvidia’s latest chips. Data center demand concerns also loom due to oversupply relative to demand forecast.

Nvidia stock returns have been volatile over the past four years, with 125% growth in 2021 and -50% in 2022. Trefis’ High Quality Portfolio, with 30 stocks, has outperformed the S&P 500. Concerns about potential AI spending slowdown, economic factors, and competition from AMD and Amazon could impact Nvidia’s future performance.

Trefis values Nvidia stock at $101 per share, slightly below the market price of $112. Risks include potential easing of the AI wave, competition from AMD and Amazon in AI chips, and a possible slowdown in GPU demand. Nvidia’s premium valuation may not fully reflect these risks, raising concerns about future performance.



Read more at Nasdaq: Why Is Nvidia Stock Down 11% Over The Past Month?