The article discusses the recent drop in NVIDIA’s stock price after the company announced its new AI chip, the H100. Despite the chip’s impressive capabilities, including being the world’s largest and most powerful chip for AI applications, NVIDIA’s stock fell by over 6% after the announcement. The drop is attributed to concerns about the chip’s high price tag of $32,000 and the potential impact on NVIDIA’s profit margins. However, analysts remain optimistic about NVIDIA’s long-term prospects in the AI market, as the company continues to lead in developing cutting-edge hardware for AI applications. The article highlights the growing demand for AI chips and the intense competition in this space, with companies like AMD and Intel also vying for market share. Overall, while the stock price drop may be a short-term reaction, NVIDIA’s position as a leader in AI hardware is expected to drive growth in the future.
Source: https://abcnews.go.com/Business/nvidias-stock-price-dropped/story?id=111398609