Nvidia to Close Month at a Loss after Customer Assist Rumors Circulate
Nvidia stock is down for November and has a lot of lost ground to make up thanks to circulating fears over the decline of the AI market.
Quick overview
- Nvidia (NVDA) stock experienced a slight decline on Friday, finishing November with a 10% loss.
- The company faced rumors of vendor financing to boost sales figures, which Nvidia denied in a recent memo.
- Concerns about a potential AI market bubble have negatively impacted Nvidia and other tech stocks this month.
- Despite recent challenges, many analysts still recommend Nvidia as a buy, anticipating better performance in December.
Nvidia (NVDA) stock took a slight downturn on Friday after performing well on Wednesday, and the company is set to finish November at a considerable loss.
Throughout November, Nvidia stock has declined about 10%, and the situation may get worse as there is a rumor going around that the company boosted its sales by helping customers pay for their processing chips.
Nvidia sent out a memo on the weekend stating that it does not engage in vendor financing. They have been accused of helping customers buy their products by lending them money, and in return, they made their sales figures look better. The company says that there are no records of that kind of activity on its books, and they said they would not be compared to other companies that engaged in these practices and suffered dramatically for it, which included Lucent and Enron.
Nvidia Struggled in November
Consumer financing claims are not the only serious issues the company has had to face this month. They have also suffered severely from fears that the AI market is going to burst and that a bubble has been forming in this market for a while.
Throughout November, tech stocks declined dramatically as analysts talked continuously about the problem of a market bubble and how AI could soon collapse. After billions of dollars of investments and promises of future functionality that have yet to see the light of day, the AI market was starting to look less rosy, and investors lost some of their optimism about AI in November.
AI-related stocks like AMD, Nvidia, Tesla, Bitfarms, and others were hit hard over the last few weeks as these fears persisted. Nvidia stock moved from an all-time high of $207 in October to its current low of $179. The stock is still up 20% from its 2025 starting point, but analysts expected much more from the stock this year. 2025 was supposed to be a big year for AI stocks, but they were hit by severe tariffs and late-year AI market fears.
Nvidia stock is still rated as a stock to buy right now by many analytical firms, and we believe the stock will perform better in December and will prove to be an excellent long-term investment. Nvidia has proven they can grow from year to year for the past few years, and despite a few major hurdles in 2025, they are up overall and should prove profitable for investors willing to wait out the market.
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