Did Nvidia Just Lose $150 Billion Because Microsoft Hit “Unsubscribe”?

Nvidia's 25 days of Christmas has been less "fa-la-la-la-la" and more "wah-wah-wahhh." Over the last month, the AI-chip superstar has slid 10%, wiping nearly $150 billion off its market cap (more than the GDP of The Bahamas, Armenia, Albania, Georgia, and Iceland… COMBINED). Cue the sweaty-palmed investors squinting at their charts like boomers trying to decipher a QR code, wondering if Nvidia’s AI reign is losing its magic or just suffering from a really bad Wi-Fi connection.

For a company that collected $13.51 billion in Q3 (a 171% increase year-over-year), things are looking shakier than that one wheel on a Walmart shopping cart. Analysts point to rising competition (looking at you, Broadcom), slower AI spending, and whispers that maybe, just maybe, Nvidia’s $1.1 trillion valuation isn’t exactly justified. And then there’s Microsoft, Nvidia’s biggest sugar daddy. Turns out, Daddy Nadella has decided to put away the company credit card. During a podcast, CEO Satya Nadella basically said, “We’re stocked up, thanks.” (Translation: “Don’t call us, we’ll call you.”) For Nvidia, that’s the equivalent of your business partner saying, “We need to talk.” You know it’s not going to end well.

If you do the numbers… Microsoft’s stash of Hopper GPUs for 2024 is 485,000 units deep, according to Omdia. That’s more than double Meta’s sad little pile of 224,000 chips. Even Amazon and Google are lagging behind with 196,000 and 169,000 respectively. But the real surprise? China decided to crash the party. ByteDance (yep, TikTok’s ) and Tencent both muscled their way onto the leaderboard despite U.S. export bans. ByteDance grabbed 230,000 units of Nvidia’s slightly less beefy H20 chips, proving once again that they’ll settle for "off-brand" if it gets the job done.

And if you think Nvidia can just chill while the big players write them thank-you notes, think again. Amazon and Google are busy whipping up their own in-house chips (probably in some secret lab that looks like the Avengers HQ). ByteDance is also reportedly tinkering with AI hardware and plotting data centers far, far away from Uncle Sam’s export drama.

Bottomline, Nvidia CEO Jensen Huang, is pinning his hopes on the upcoming Blackwell chip, set to debut in 2025. But with competitors like Amazon and ByteDance sharpening their knives, Huang’s swagger might need a little more than his cool leather jacket to keep investors happy.

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Stock.News has positions in Microsoft, Amazon, and Google.