Nvidia Faces Sharpest Weekly Drop Since November as Competition and Growth Concerns Mount

Nvidia (NVDA) shares plummeted 5.5% in a single session, erasing $259 billion in market value and putting the stock on track for its sharpest weekly decline since November. The sell-off is intensified by reports that major clients, including Meta and OpenAI, are actively seeking alternatives for their artificial intelligence infrastructure. While revenue growth is projected to accelerate to 77% in the April quarter, analysts are increasingly concerned about a potential slowdown after the current fiscal year. This shift in long-term outlook has overshadowed immediate gains, leading to a reassessment of the company's premium valuation. As a key driver of the Nasdaq 100, Nvidia's volatility reflects broader market anxiety regarding the sustainability of the AI-driven rally and the impact of increased competition from its primary partners.