Nvidia Falls After Record High As Investors Question AI Spending Spree

Sep 26 - Nvidia NVDA shares slipped in Friday morning trading, down about 1.5% to $175, as investors continued to weigh the company's $100 billion investment commitment to OpenAI. The deal has attracted scrutiny because much of the money is expected to come back through chip purchases, raising questions about whether it reflects sustainable demand or circular financing.

The pullback comes just days after Nvidia set a record high of $184.55 on Monday. The stock briefly dipped below its 50-day moving average on Thursday before recovering to close higher, signaling mixed technical momentum. Even with the rebound, Nvidia has given back 3.6% from its early-week peak.

Peer chipmakers also saw weakness. Advanced Micro Devices AMD fell 1.1% and Broadcom AVGO slipped 0.7% in early trading, showing that concerns extend beyond Nvidia. Micron Technology MU also moved lower alongside other AI-linked semiconductor names.

Analysts are constructive even in the face of pressure. Barclays maintained a Buy and a 240-price target on Nvidia whereas Mizuho Securities attributed the drop to a small reset, which pushed a group of investors to make profits following a robust September run.