Are Billionaires and Institutional Investors Losing Faith in Nvidia? The Data Tells a Chilling Story. - Yahoo Finance

Recent data suggests that institutional investors and billionaires are beginning to lose confidence in NVIDIA, despite the company's strong performance in the AI sector. Since early 2023, NVIDIA’s sto... Read original →

Institutional sell-offs of Nvidia reflect anticipatory pricing of an AI infrastructure investment peak, not just profit-taking. Technologically, the Hopper-to-Blackwell transition reveals diminishing returns in GPU scaling—training costs now outpace compute ROI, forcing cloud providers to reassess capex. Regulatory friction from U.S. export controls inflates compliance overhead, especially on China-bound A800/H800 workarounds. Intel is exploiting this by accelerating Gaudi 3 adoption and partnering with TSMC (Taiwan, China) to boost advanced packaging capacity, offering localized, cost-competitive alternatives. Over the next 12–24 months, 'compute inflation' will trigger a market reset: GPU ASPs and margins face downward pressure, while cloud hyperscalers with in-house AI chips reshape procurement. If Nvidia fails to monetize scientific workloads like the Vera Rubin Observatory swiftly, its valuation narrative shifts from AI monopolist to cyclical semiconductor play.