Nvidia drops 5%, concerns persist over its return on investment and growth momentum

CoinNetwork · 2026-02-26T17:45:23+00:00

Nvidia's stock price dropped 5% in Thursday's early trading, dragging down U.S. stock indexes despite reaching a three-month high intraday on Wednesday. Investors are concerned about returns in the artificial intelligence sector, and the market is skeptical about Nvidia's ability to sustain growth. JPMorgan analysts noted that the outlook for data center business growth remains uncertain, affecting investor sentiment.

CoinNetwork

2026-02-26 17:45:23

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CryptoWorld News: Nvidia (NVDA.O) dropped 5% in Thursday’s early trading, dragging down major U.S. stock indexes. The stock closed at a three-month high on Wednesday. Its optimistic earnings failed to boost investor sentiment as more investors worry about the returns from large-scale investments in artificial intelligence. This market reaction reflects growing concerns over whether Nvidia’s record-breaking growth can continue, as competitors are launching new AI accelerators, large companies are investing in custom chips, and the overall AI spending cycle has become more uneven. JPMorgan analysts stated in a report, “This widespread reaction indicates that investors still want more information. We believe this is related to the uncertainty surrounding Nvidia’s data center business growth prospects for fiscal 2027, especially considering the significant increase in capital expenditure budgets from major clients.”

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