Investing.com — Nvidia stock has fallen 15% from its recent all-time high, a decline that includes a 2% decline in premarket trading on Tuesday. This downtrend is being linked to comments made by a major customer, Microsoft (NASDAQ:), regarding its chip supply situation.
In a podcast on Friday, Microsoft CEO Satya Nadella addressed the company’s supply situation. He said: “I have power, yes. I’m not limited by chip supply. We were definitely limited in ’24. What we told the market is that’s why we’re optimistic about the first half of ’25.”
This statement indicates that Microsoft no longer faces chip supply constraints, a condition that had been an issue for the company in 2024. The company’s outlook for the first half of 2025 is optimistic due to this change in circumstances.
This perspective from Microsoft contrasts with the position of AI chip supplier Nvidia. The company has previously stated that it expects demand for their Blackwell chips to outstrip supply for several quarters through 2025. This projection from Nvidia suggests continued strong demand for their products, even as one of their major customers, Microsoft, indicates a decrease in the need for chip supply.
This article was generated and translated with the support of artificial intelligence and reviewed by an editor. For further information, please see our T&Cs.
