Nvidia Loses 8% of Value After Hitting Record on Oct. 29

Nvidia shares are down about 8% since hitting a record on Oct. 29, underperforming the S&P 500 Index as investors grow concerned about the sustainability of artificial intelligence spending and the chipmaker’s grip on the market, Bloomberg News reported.

Wall Street is also growing wary of Nvidia’s investments in many of its customers, which some analysts see as artificially propping up demand. (Photo: Nvidia)

The stock has shed roughly $460 billion in market value in a matter of months, though it still retains a three-year gain of nearly 1,200%.

The chipmaker is facing intensifying competition from rivals such as AMD, as well as from major customers including Alphabet and Amazon, which are developing their own chips.

Wall Street is also growing wary of Nvidia’s investments in many of its customers, which some analysts see as artificially propping up demand.

Separately, Nvidia CEO Jensen Huang said he is not concerned about a proposed billionaires’ tax under consideration in his home state of California.