Why has Nvidia lost so much value?
I'm a big investor in Nvidia and recently lost a lot of money. What could be the reason for this sharp drop in share price?"
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nVidia is doing what Intel does: they rest on their name and think “we'll release products for a lot of money that don't have a good price/performance ratio and the fanboys will buy them.”
You can see it with the 5090… 20-25% performance boost compared to the 4090 and nobody knows how much the card will cost here, but people are still vying for the card.
As Roman so aptly said, “more marketing than actual performance”
and there we have the “nice” side effect again: Marketing costs money and has a negative impact on product prices
And I don't even want to start with "AI": here nVidia is outranked, which brings us back to my statement in my first paragraph
and now you “big investor” you should be enlightened
You only lose money if you realize a paper loss. If you have a large position in, say, NVDA, you probably have short calls and possibly long puts or another hedge.
NVDA was the target of an illogical histeria. Deepseek has presented an efficient model – ergo, the demand for GPUs will increase significantly. NVDA will benefit greatly from this. An H100 (~€30,000) won't get you very far.
If you're a big investor, you should be able to inform yourself about this space. All the major news sites cover what's going on there.
Another company has introduced a technology that allows AI to require eight times less computing power. This, of course, has implications for expected future revenues.
Many people are now taking advantage of this to cash in. After all, the value has risen significantly in recent years.
A startup in China has created an AI at a fraction of the cost and using standard chips instead of Nvidia's extremely expensive ones, which is as good as or even better than the American ones. Accordingly, there are fears of lower sales at Nvidia, and the stock has generally been pretty hotly spun lately.
If you've supposedly lost so much wealth, how do you intend to realize your plans to buy property in Thailand or Japan for several hundred thousand euros?
Always remember that every user can look at your account and see all your questions and answers.
Oh come on, Arun may be a troll, but at least he's a funny one
That's why I gave him the "Funny" award, but when he's in a bad mood he can put you down
Because a competing algorithm to ChatGPT was developed in China that requires much less computing power.
"Recently" means "not so long ago." But you can only have won. You can only have lost yesterday or today—so, very recently, not recently.
But such linguistic subtleties are of no interest to a major investor like Arun Kong.
The Chinese have launched a very cost-effective and efficient AI system. Nvidia, by contrast, looks relatively "old."
With a P/E ratio above 50, I am not surprised by such a long overdue setback.
Even the smallest news in the industry is enough.
Google DeepSeek, you big investor.