Nvidia, AMD, Broadcom Slide as AI Data Center Slowdown Fears Hit $120 Billion Outlook
Updated
Updated · The Motley Fool · Jul 15
Nvidia, AMD, Broadcom Slide as AI Data Center Slowdown Fears Hit $120 Billion Outlook
1 articles · Updated · The Motley Fool · Jul 15
Summary
AI chip stocks have sold off after investors began worrying that the multiyear data-center build-out could cool, pressuring Nvidia, AMD and Broadcom despite their recent market leadership.
Nvidia's pullback has cut its valuation to 16 times fiscal 2028 earnings estimates, even as the company keeps expanding from training GPUs into inference chips, full AI servers and fast-growing networking.
AMD is pitching the downturn as a buying chance tied to inference and agentic AI, where it says the GPU-to-CPU ratio could shift from 8-to-1 in training to 1-to-1 and lift a $120 billion CPU market by 2030.
Broadcom still sees custom AI chips and networking as major growth drivers, with Alphabet spending up to $190 billion on AI infrastructure this year and Broadcom targeting a business above $100 billion in fiscal 2027.
The sell-off is framed less as a collapse in AI spending than as a valuation reset after a strong run, with all three companies still tied to years of expected infrastructure demand.