Nvidia’s air pocket, heavyweight of generative AI

Nvidia, the microprocessor giant, is in the throes of major turbulence. The group lost nearly $280 billion in one session on Wall Street on Tuesday. The spearhead of generative AI should nevertheless hold up.

Investors are beginning to doubt the potential of artificial intelligence. They are wondering about the promised revolution that was supposed to shake up the entire economy. And since Nvidia is the leading manufacturer of graphics cards and the star of generative AI, they are turning away from it.

Yet Nvidia has experienced incredible growth in recent years. Its chips were selling like hotcakes to all the tech companies, such as Amazon, Microsoft or Meta. There were even tensions over its deliveries. In less than a year, its profits increased by more than 600%. Before the summer, Nvidia’s value was estimated on Wall Street at more than 3,000 billion dollars, as much as the French public debt, or all of our CAC 40 companies combined!

But at the beginning of this week, it’s the plunge. On Tuesday, September 3, Nvidia lost nearly 280 billion dollars in one session, something never seen before. Since then, the stock has recovered a little, but Nvidia weighs so heavily on Wall Street that the storm affecting it is shaking the entire stock market. HAS The giant alone is able to move the clues.

All this is happening in a gloomy global climate. Investors also have strong concerns about the global economic context, between a slowing Chinese economy and risks of recession in EUnited States. In fact, when the sky begins to cloud over, investors tend to play it safe, returning to slightly more traditional values, which reassure them.

And in addition, the American justice system is taking a close interest in Nvidia. According to Bloomberg, the group is the subject of a subpoena from the American Department of Justice. Which means that we are not far from the filing of an official complaint. The American authorities are seeking to obtain evidence demonstrating that Nvidia has violated American antitrust laws: in a quasi-monopoly position, the firm would penalize its customers who do not exclusively buy its products.

But, if Nvidia is a somewhat weakened order giver at the moment, the group remains very powerful. Despite this stock market turbulence, it still has some up its sleeve.