Nvidias Stock Decline: The Impact of Slow AI Adoption in July

Chipmaker Nvidia has benefited greatly from artificial intelligence (AI), with its GPUs being the industry standard for data centers and video games. But AI adoption has been sluggish; in July, Nvidia`s stock fell by as much as 23%. The technology requires computational power to run large language models, making it largely the domain of tech giants like Alphabet, Microsoft, and Meta Platforms. Alphabet reported higher capital expenditures of $13.2 billion in Q2, while Microsoft spent$19 billion on AI-centric spending in Q4. Meta Platforms spent over $8.1 billion on capex in Q2, and is now predicting full-year spending of$37 billion to $40 billion. This raises the question of whether it is too late to buy Nvidia stock.