The quarterly financial report released by global chip giant American technology company Nvidia at the end of August triggered negative market reactions, and subsequently its stock price momentum significantly weakened, with a cumulative decline of nearly 20%. The significant correction in stock price highlights the market's concerns about the uncertainty of Nvidia's future prospects, driving the stock market to weaken and casting a shadow over the global chip market and the US economy.
According to data submitted by Nvidia to the US Securities and Exchange Commission on the 5th, Nvidia CEO Huang Renxun sold nearly 5.3 million shares of Nvidia's common stock between June 13th and September 5th, valued at approximately $630 million. As the largest individual shareholder of Nvidia, Huang Renxun holds approximately 93.5 million shares as of March 25th, accounting for approximately 3.8% of the company's total outstanding shares.
Nvidia's stock price fell more than 4% on the 6th, hitting its worst weekly performance in two years. The company's market value has shrunk by $406 billion in just the past week.
Since entering the artificial intelligence chip market, Nvidia's stock price has soared significantly, with a market value exceeding $3 trillion this year. Some analysts still positively evaluate Nvidia's continued investment and innovation in the field of artificial intelligence, believing that the company's investment in next-generation large-scale language models such as GPT-5 and Llama 4 may drive further development in the field of artificial intelligence. However, with the overall changes in the US economy and technology industry, investors have begun to question Nvidia's high valuation.
Some investors believe that despite Nvidia's strong performance in the field of artificial intelligence, its growth prospects and market value are questionable. Analysts believe that NVIDIA's share price decline is a direct reflection of the market's concern about the foam in technology stocks, and also indicates that the technology industry may face greater pressure in the future.
Under the multiple challenges of high inflation, high interest rates, and global economic slowdown, the decline in Nvidia's stock price also reflects the market's concerns about the overall outlook for the US economy and the global macroeconomic situation. Especially in the context of the chip industry's high dependence on global supply chains and market demand, any economic slowdown could lead to further reduction in chip demand.
Nvidia itself also faces a series of challenges, including the delayed release of its new product Blackwell and the pressure on gross profit margins, which have a negative impact on the company's short-term performance due to fundamental factors. The media recently reported that the US Department of Justice may conduct an anti-monopoly investigation into Nvidia's market dominance in the field of artificial intelligence chips, which also poses regulatory risks to the company.
In addition, Nvidia is facing increasingly fierce competition in the artificial intelligence and accelerated computing markets, not only to cope with competition from large listed companies, but also to face challenges such as internal cloud projects.
Ruisui Securities analyst Jordan Klein stated on the 6th that Nvidia's stock price is not expected to return to a level above $130 per share in the coming weeks. Chip stocks as a whole seem to be stuck in a quagmire and are expected to continue to decline.