Nvidia, the leading manufacturer of artificial intelligence (AI) chips, saw its stock price drop by 2.92% on May 30, 2025. The decline comes amidst concerns that the company may be entering a period similar to Apple’s transition from being a hardware-focused company to becoming a services-driven entity.
Nvidia has been aggressively expanding its AI capabilities and partnering with major companies to integrate its chips into various devices. This shift in focus has led some analysts to compare Nvidia’s situation to Apple’s move towards becoming a more services-oriented company, which saw Apple’s stock price rise significantly in the late 1990s.
However, unlike Apple, Nvidia is heavily dependent on hardware sales, which makes it vulnerable to fluctuations in the technology industry. If Nvidia fails to successfully transition into software and services, its stock price may suffer accordingly.
As Nvidia continues to navigate this challenging landscape, investors will be watching closely for signs of progress towards becoming a more diversified company with a stronger focus on software and services.
Source: https://www.barrons.com/articles/nvidia-stock-price-market-cap-microsoft-535ebcb6