NVDA Stock Sell-Off: AI Hardware Demand Debate and Key Risk Factors

The event centers on a Reddit discussion about Amir Yazdan (Google DeepMind researcher/TPU engineer) stating the recent NVDA sell-off reflects investor misunderstanding of AI hardware demand [6]. Key Reddit arguments include bearish short-term views (macro conditions reducing AI service demand), hidden B2B AI use cases supporting demand, and long-term competition risks from China’s chips or AI bubble burst [6].

NVDA’s 5-day performance is -0.54% with a 1-month decline of -5.86% [0]. The sell-off may link to rumors of Meta considering Google’s TPUs [1]. The Tech sector underperformed defensive sectors, aligning with macro concerns [0]. Analyst consensus remains “Buy” with a $250 target (+38.7% from current price) [0].

• Financial Metrics
  : Data Center segment accounts for 88.3% of FY2025 revenue [0]. Q3 2025 revenue hit $57B (up 62% YoY) [2].
• Demand Signals
  : South Korea will deploy 260k NVDA GPUs [3]; Chinese tech giants shift AI training offshore to access NVDA chips [4].

Critical gaps include Yazdan’s exact comment text, Meta’s chip strategy impact, China’s chip progress, and macroeconomic data validating demand concerns [6].

• Competition
  : Google’s TPUs and China’s chips pose long-term threats [1,5]. Risk warning: Users should be aware of competition impacts on market share.
• Valuation
  : High P/E (44.21x) makes NVDA vulnerable to correction [0]. Risk warning: Premium valuation warrants careful consideration.
• Macroeconomics
  : Weak conditions may reduce AI spending [6].

1. Meta’s chip strategy impact
2. China’s AI chip progress
3. Quarterly earnings trends
4. Macroeconomic indicators for AI spending