NVIDIA Stock Price: Why Intel's 45% Plunge Is Important for NVDA Investors
NVIDIA's market value has dropped to around $4.94 trillion, falling below the $5 trillion mark. With Intel experiencing a 45% slump in October, including a 29% drop on a single day, investors are re-evaluating chip stocks. Intel's significant decline has also drawn the market's attention to how future U.S. chip production and alliances will be structured.
NVIDIA is at the heart of this issue, as its AI processors will affect the new factory production capacity and where government support is more likely to flow. The company's revenue from its computing and networking (Compute and Networking) business is approximately $275.4 billion, while its revenue from its graphics (Graphics) business is about $27.6 billion.
A key long-term risk is its CUDA software platform. If a cheaper open-source alternative becomes more widely adopted, large companies may switch directly to manufacturers such as TSMC to custom chips, which would put pressure on NVIDIA's high profit margins.
