Nvidia Shares Dip as Investors Shift to Other AI Hardware

Nvidia shares declined about 3% to roughly $216 after a volatile session during which the stock briefly traded above $230 before reversing course.

Investors shifted interest away from Nvidia’s graphics processing units and toward other parts of the artificial intelligence hardware supply chain, including central processing units, memory chips and optical networking components that support large-scale AI deployments.

At Computex in Taipei this week, Nvidia introduced RTX Spark, an AI-focused PC chip platform that pairs the company’s graphics technology with a new Arm-based processor architecture aimed at higher-end personal computers.

Company executives outlined the PC initiative as a way to expand Nvidia’s addressable market in devices traditionally led by Intel, Advanced Micro Devices and Qualcomm. Market participants expressed caution about assigning large near-term value to the PC effort, while noting that demand for data center infrastructure has driven much of Nvidia’s recent revenue growth.

In remarks at a private investor event in Taipei, Jensen Huang described a recent change in returns from AI investments: “Only for the last six months has the ROI been completely reset. It is now insanely profitable.” He added that only “crazy” people would question the returns being generated by AI.

Morgan Stanley maintained an Overweight rating and a $288 price target on Nvidia, citing the company’s position across multiple product categories. After management briefings at Computex, the firm highlighted that Nvidia now sees about $20 billion in potential CPU-related revenue and emphasized efforts to reduce the total cost of ownership for AI infrastructure, particularly head-node systems that represent a substantial portion of deployment costs.

Market activity over the week showed only modest support for the stock following the Computex announcements. Investors continue to seek further evidence that Nvidia’s newer initiatives will contribute significant revenue alongside its dominant GPU business.