Nvidia is now the most valuable semiconductor company in the U.S.
incredible winning streak may soon be coming to an end.
The red-hot maker of graphics chips is facing headwinds that range from the aftereffects of pandemic-era spending to waning demand from gamers. And it could get far worse: A key crypto market development in the coming months may lead to a spectacular glut of its products.
The company declined to comment.
Slowing business momentum would be a dramatic turn for America’s undisputed chip king. A series of strong results enabled Nvidia (ticker: NVDA) to surpass
(INTC) two years ago to become the most valuable U.S. chip maker. The stock gained 125% last year—the highest return for a large-cap technology company.
During the pandemic, Nvidia’s sales soared as the general public clamored to upgrade their in-home digital entertainment hardware, leading to chronic product shortages and resellers gouging consumers. For most of the past 18 months, Nvidia’s products sold out instantly whenever they were offered for sale.
But in recent weeks, the situation has shifted. Nvidia’s gaming cards are increasingly available on major electronics websites, including Microcenter, Newegg, and
com. Some retailers are showing rising inventory levels and have even started to discount the cards, another clear sign demand is faltering. The weakness is showing up on reseller marketplaces too. According to the price-tracking website…