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Nvidia Stock Slips After Amazon Reportedly Undercuts AI Chip Prices — Analysts Expect ‘Wake Up Call’ From Jensen Huang’s GTC Keynote

Nvidia Stock Slips After Amazon Reportedly Undercuts AI Chip Prices — Analysts Expect ‘Wake Up Call’ From Jensen Huang’s GTC Keynote

  • 18.03.2025 18:49
  • msn.com
  • Keywords: Stock Price Drop, Market Volatility

Nvidia shares dropped 3% at market open amid reports that Amazon is offering discounted AI chips, undercutting Nvidia's pricing. Analysts expect CEO Jensen Huang's GTC keynote to reignite tech stock enthusiasm despite ongoing macroeconomic challenges and trade policy concerns.

Nvidia ServicesNVDAsentiment_dissatisfiedAMZNsentiment_satisfied

Estimated market influence

Nvidia

Nvidia

Negativesentiment_dissatisfied
Analyst rating: Strong buy

Stock price dropped due to Amazon's undercutting AI chip prices and investor concerns.

Amazon

Amazon

Positivesentiment_satisfied
Analyst rating: Strong buy

Offering discounts on AI chips to compete with Nvidia, potentially increasing market share.

Context

Analysis of Nvidia Stock Slip and Market Implications

  • Stock Performance:

    • Nvidia (NVDA) shares fell by up to 3% at the Tuesday open, with investors awaiting CEO Jensen Huang’s keynote address at GTC 2025.
    • The stock has declined 17% in 2025, though it remains up 27% year-over-year.

  • Amazon's Competitive Move:

    • Amazon Web Services (AWS) is reported to be undercutting Nvidia with aggressive discounts on AI chips, as detailed by The Information.
    • This move aims to compete directly with Nvidia and attract more customers in the AI chip market.

  • Wedbush Analysts' Outlook:

    • Despite concerns over pricing pressure and macroeconomic challenges, Wedbush expects Huang’s keynote to act as a “wake-up moment for tech bulls.”
    • The firm highlights $2 trillion in CapEx over three years driving the AI revolution and predicts this will lift tech stocks.

  • Keynote Expectations:

    • Analysts anticipate Huang to showcase surging demand for Nvidia’s next-generation Blackwell AI chips, which are central to the AI boom.
    • Additional topics may include advancements in Rubin architecture, quantum computing, and Nvidia’s expansion into autonomous systems and robotics.

  • Market Positioning:

    • Nvidia maintains a dominant position in AI infrastructure, with its chips likened to “oil or gold” in the tech ecosystem.
    • Despite near-term headwinds, Wedbush sees long-term growth potential for AI-linked stocks, including Microsoft, Amazon, and Meta.

  • Regulatory and Trade Risks:

    • Concerns persist over Trump’s trade policies and regulatory risks, though Nvidia’s market leadership is seen as a mitigating factor.

  • Retail Sentiment:

    • On Stocktwits, retail sentiment remains neutral, with investors divided on the impact of Huang’s keynote.
    • Some speculate about potential market manipulation, given the stock’s drop despite high anticipation.

  • Long-Term Implications:

    • The AI boom is viewed as part of an eight-to-ten-year investment cycle, suggesting the current sell-off could be a buying opportunity.
    • Huang’s speech is expected to shift investor focus back to AI’s transformative potential and Nvidia’s pivotal role in the sector.