Why Nvidia (NVDA) Shares Are Getting Obliterated Today - The Globe and Mail

Nvidia (NVDA) shares dropped 5.9% in afternoon trading amid macroeconomic headwinds and an upcoming Senate hearing on China chip sales, overshadowing strong product announcements at Computex. While th... Read original →

Nvidia’s stock plunge reflects geopolitical risk repricing, not technological weakness. While Vera Rubin and RTX Spark deepen its lead in 3nm EUV, HBM4, and Arm-CPU co-design, the looming Senate hearing on potential military diversion of chips to China forces a costly supply chain overhaul—exposing TSMC in Taiwan, China to heightened scrutiny. Competitors like Intel, AMD, and Qualcomm are accelerating CUDA-alternative stacks, especially in AI PCs and edge inference, while cloud players such as Oracle and CoreWeave may pivot toward custom ASICs to reduce NVLink dependency. Over the next 12–24 months, U.S. export controls will shift from product bans to end-use audits, compelling Nvidia to embed hardware-level traceability. Though this caps near-term multiples, it entrenches its dominance in geopolitically ‘clean’ markets.