Nvidia cools down as investors expect growth slowdown

Nvidia, the company that became synonymous with the AI gold rush, is having a moment of quiet reckoning. Shares have pulled back to around $210-212, down from a record close of $235.47 set on May 14, representing a decline of roughly 10% from the peak. The sell-off accelerated in mid-September, with shares dropping approximately 2.7-3.6% over a two-day stretch between September 14-15. Competitors like Broadcom and AMD have seen even steeper declines during the same window. The numbers still look absurd, just less absurd Nvidia’s most recent quarterly results were, by any normal standard, extraordinary. The company posted Q2 fiscal 2027 revenue of $96.2 billion, a 106% increase year-over-year. Its data center segment generated $89 billion of that total, surging 117% compared to the same period last year. Nvidia projected Q3 revenue of approximately $108 billion, give or take 2%, and management signaled roughly 70% revenue growth for all of fiscal 2028. Management also flagged that gross margins would likely stabilize in the 71-72% range by Q4. Supply constraints and a philosophical pivot Memory components, critical for building the AI accelerators that hyperscalers are hoarding, rem...