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 09:45
  • msn.com
  • Keywords: Stock Price Drop, Market Sentiment

Nvidia shares dropped as Amazon reportedly offered cheaper AI chips, but analysts expect CEO Jensen Huang’s GTC keynote to reignite tech stock enthusiasm amid the AI revolution.

Nvidia ServicesNVDAsentiment_dissatisfiedAMZNsentiment_satisfied
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Estimated market influence

Nvidia

Nvidia

Negativesentiment_dissatisfied
Analyst rating: Strong buy

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

Amazon

Amazon

Positivesentiment_satisfied
Analyst rating: Strong buy

Offering deep discounts on AI chips, which may attract more customers and increase market share.

Context

Analysis of Nvidia Stock Movement and Market Implications

Market Reaction

  • Stock Performance: Nvidia (NVDA) shares fell by up to 3% at Tuesday’s open.
  • Investor Sentiment: Investors were awaiting CEO Jensen Huang’s keynote address at the GPU Technology Conference (GTC) 2025.

Competitive Landscape

  • Amazon's Move: Amazon Web Services (AWS) is offering deep discounts on its AI chips to compete with Nvidia, as reported by The Information.
  • Market Impact: This move has raised concerns about competitive pricing pressure on Nvidia’s dominant position in the AI chip market.

Strategic Considerations

  • Wedbush Analysts' Outlook:
    • Expect Huang’s keynote to potentially reignite enthusiasm for tech stocks.
    • Highlighted the importance of Nvidia’s chips as the foundation of the AI revolution, comparing them to "oil or gold."
    • Anticipated discussion on surging demand for next-generation Blackwell AI chips and advancements in Rubin architecture, quantum computing, and autonomous systems.

Long-term Outlook

  • AI Boom: The AI revolution is seen as an 8-to-10-year investment cycle, with $2 trillion in capital expenditure (CapEx) expected over the next three years.
  • Growth Trajectory: Despite near-term headwinds, Nvidia’s long-term growth trajectory and dominant position in AI infrastructure are expected to drive momentum for AI-linked stocks, including Microsoft, Amazon, and Meta.

Retail Sentiment

  • Neutral Sentiment: On Stocktwits, retail sentiment around Nvidia was neutral as of March 18.
  • Investor Skepticism: Some investors expressed doubt about whether Huang’s keynote would be enough to reverse the stock’s slide, with one suggesting potential market manipulation.

Stock Performance Metrics

  • Year-to-date (2025): Nvidia shares have declined by more than 17%.
  • One-Year Growth: Despite the recent drop, the stock is still up by over 27% in the past year.

This analysis highlights the competitive dynamics of the AI chip market, the strategic importance of Nvidia’s technology, and the broader implications for tech investors.