NVDA: Nvidia Got Battered Post Earnings. Can the Chipmaker Keep the AI Momentum?

Signs have popped up that the massive 200% share-price increase this year is grinding to a halt. China and sky-high expectations are to blame.

• Nvidia stock NVDA has hit the brakes on its monster 2023 rally. Shares of the giant chipmaker sold off by more than 2% Wednesday despite a blowout earnings report. The adverse investor reaction is casting a shadow over the company’s upbeat growth projections.
• As the largest AI chips player, Nvidia is shifting production gears and will be churning out new tech every year, instead of every two years. That’s how executives plan to stay ahead of the curve and not only meet but shatter the already sky-high Wall Street expectations.
• A lurking danger from the Far East - China - is threatening to disrupt Nvidia’s chip game and investors are preemptively pulling back. The Asian economy, a huge market for Nvidia, has introduced restrictions on chip exports. The solution - Nvidia has started developing custom-made AI chips specifically for China.