Is Nvidia Stock Hitting A Bear Market? Shares Drop 7% After Microsoft CEO Satya Nadella Signals Shift In AI Chip Demand

Benzinga 2024-12-18

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Nvidia stock has fallen 17% from its record high on November 21st, entering correction territory and nearing a bear market. The decline followed Microsoft CEO Satya Nadella's remarks on the B2 podcast, where he indicated a shift in AI chip demand dynamics, noting that Microsoft is no longer chip supply-constrained. Microsoft is Nvidia's largest customer, and the statement has fueled concerns about potential slowing demand for Nvidia's GPUs. Nvidia’s Blackwell GPUs reportedly face a one-year backlog. Analysts see the current downturn as a temporary "digestion period." Nvidia shares have dropped 7% since Nadella’s comments.

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