Live NVIDIA (Nasdaq: NVDA) News: Why NVIDIA's Stock is Down on May 6
AI Portfolio
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NVIDIA’s stock price opened down about 2% on Tuesday.
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Key reasons for the decline include a general sell-off of technology stocks and also a new bipartisan bill tracking the sale of AI chips into China that could reduce revenue further this year.
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NVIDIA’s historic ramp—from near-zero Blackwell revenue in October to an expected $30B+ this quarter—is unprecedented in semiconductor history. Supply constraints remain a near-term cap, but signs point to steady improvement, with stronger-than-expected customer demand continuing to build.
Estimates for FY27 have been raised, reflecting durable inference-driven growth and improving gross margins. Contrary to fears of a slowdown, customers are redeploying training chips for inference workloads, and large-scale AI deployments are clearly generating revenue.
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Can NVIDIA close in the green today? As of 10:45 a.m. ET, the stock is down about .6%, a sharp increase from earlier lows. NVIDIA is rising along with the general market. The Nasdaq Composite is now down .52% and touched its daily lows a little after 10 a.m. ET.
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One of the biggest ‘threats’ to NVIDIA in the coming years is AMD’s GPUs taking market share. AMD reports after the bell today, so we’ll get some more insight into whether the company is gaining ground.
However, it is worth noting that numerous reports have hinted at AMD improving the broader ‘ecosystem’ around its AI chips. For example, researcher Semi Analysis recently praised the progress of AMD’s software that could finally start taking a bite out of NVIDIA’s CUDA moat.
Another area to watch is that large hyperscalers like Amazon (Nasdaq: AMZN) and Microsoft (Nasdaq: MSFT) have reportedly struggled getting usage of AMD’s chips in their datacenters that’s comparable to NVIDIA chips. However, recent interviews on ‘expert networks’ like Tegus point to AMD catching up in areas like inferencing.
Microsoft Director says that $AMD‘s GPUs are now a good source for inference workloads (Tegus interview): pic.twitter.com/UCMi6ucMTf
— Tech Fund (@techfund1) May 6, 2025
NVIDIA (Nasdaq: NVDA) shares are down around 2% at market open. That drop shouldn’t come as a major surprise as the Nasdaq Composite is down as well, the index opened down 1.25%
Beyond the broader market drop, there is news moving NVIDIA’s stock today. Let’s look at some of the major news NVIDIA investors need to pay attention to today.
New Bipartisan Bill Could Hurt NVIDIA
A new bipartisan bill coming to Congress aims to track AI chips after their sale to avoid smuggling to China. The bill was reported by Reuters this morning. NVIDIA recently sank after new export controls on its H20 chips designed for the Chinese market forced the company to take a $5.5 billion write-down.
However, while NVIDIA chips cannot be sold directly to China, the level of sales into regions like Singapore has raised some eyebrows. Its believed companies like DeepSeek have smuggled significant volumes of H100 chips into the country for training large clusters.
Overall, this crackdown could put further pressure on NVIDIA’s results in both this and future fiscal years. It looks like the future is increasingly headed to China using domestic chips from Huawei, while the rest of the world mostly relies on NVIDIA’s chips.
What’s NVIDIA’s Worst Case Scenario?
Goldman Sachs released a note yesterday evaluating NVIDIA’s sensitivity to datacenter cuts. They found that a “worst-case” scenario involves hyperscalers reducing their data center spend and revenue from China going to zero. In this scenario, the company believes NVIDIA could see $9.8 billion less in revenue and $.40 less in EPS estimates this year. Even with this worst-case scenario analysis, Goldman Sachs maintains a $150 price target and rates NVIDIA as overweight.
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