Over the last five days, NVIDIA stock has dropped 10% in price. If we extend the period to one month, the fall will be even more dramatic —  minus 20%. At the same time, many people already call August 5 the "Black Monday", as the NASDAQ went down 5,8% and the S&P500, the 500 biggest American companies, is down by 3.9%.

Table of Content
  1. So, what is happening with NVIDIA stock? 
  2. How will this situation influence players?
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So, what is happening with NVIDIA stock? 

There are at least two levels to look at in terms of the downfall of NVIDIA stock. The first one is connected to the US economy. There are increasing fears that it is going into recession, as the unemployment rate is at its highest since almost four years ago. This situation reflects a red zone among many big companies and NVIDIA is not alone there.

However, there is news about NVIDIA itself that influences the price of shares. The main factor is that the company is delaying its new AI chip due to design flaws. That impacts Microsoft, Google, Meta. There are also political games around East Asia, a critical region when it comes to the production of semiconductors. This doesn't bring security to the investors and thus influences the price.

How will this situation influence players?

While it might not be connected because graphics cards have their own cycle, NVIDIA seems to be discontinuing the production of RTX 3060, the most popular graphics card on Steam. Also, there are rumours that new RTX 4070 cards will have GDDR6 memory instead of GDDR6X due to design flaws. The 3060 was a hit due to 12GB of RAM (vs 8GB on 4060) and 192-bit bus width (vs 128-bit on 4060). 

At least 3060 cards will be available for some time, although the company might reevaluate some of its strategies because the stock's price has dropped.

Main image: alphacoders.com