Transcript:
Conway Gittens: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Stocks were down across the board as traders await the outcome of this week’s Federal Reserve meeting. The Dow Jones Industrial Average closed lower for the ninth straight day on Tuesday; that’s something that hasn’t happened since Jimmy Carter was in office all the way back in 1978.
Related: Nvidia stock hits correction territory, but bulls see value in AI leader
In other news, there are mounting worries about Nvidia’s throne on top of the artificial intelligence kingdom. Shares have fallen 13 percent since hitting a record high in November. That kind of move is what Wall Street calls a stock correction.
So what’s going on with the company? Some of Nvidia’s top customers have set their budgets for 2025 and there are indications AI spending will start to slow from its heady pace. There are also concerns about Blackwell, Nvidia’s latest and greatest chip. There could be some delays in full production due to a rumored flaw. Any rollout delays would hinder sales for a company that has little room for error.
This leads to the third concern about Nvidia’s reign. Competition is heating up. Broadcom is focusing on making AI chips for large cloud computing companies, known as hyperscalers. A bullish sales forecast from Broadcom is prompting concerns its success could come at Nvidia’s expense.
Finally, Nvidia’s kingdom is also feeling the heat from Chinese regulators. Beijing has opened an anti-trust probe into Nvidia’s purchase of a tech company called Mellanox.
Though Nvidia is down sharply since November, it’s still up 162 percent for 2024.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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