Nvidia Breaks Below $200, Approaches Bear Market Territory. How Much Further Can It Fall? - Yahoo Finance

NVIDIA's stock price has recently dropped below $200, nearing traditional bear market territory. Since its all-time high of $236, the stock has declined by approximately 15%, and a further 5% drop wou... Read original →

NVIDIA’s slide toward bear territory signals the end of AI’s speculative frenzy. Technically, overheated GPU demand has strained HBM memory, advanced packaging, and TSMC’s CoWoS capacity—any slowdown in AI server orders will trigger upstream inventory corrections. Compliance risks are mounting: U.S. export controls on AI chips to China force NVIDIA to develop downgraded SKUs, eroding margins and complicating supply chains. Rivals like AMD are accelerating MI300 adoption, while Broadcom bets on custom AI ASICs to bypass the GPU arms race. Meanwhile, IPOs like SpaceX divert capital, revealing investor fatigue with AI hype. Over the next 12–24 months, only players with sustainable unit economics and full-stack optimization will survive. Without deeper moats in software and power efficiency, NVIDIA’s valuation may never return to its prior peak.