Nvidia's AI Demand Fears Send Shockwaves Through Crypto Sector

Nvidia's stock took a hit last week, declining by roughly 2.2-2.4% on July 16-17 amidst a broader selloff in AI-related tech stocks.

The decline came just days after the chipmaker briefly reached a market capitalization of $4 trillion.

Analysts attribute the drop to growing concerns over whether hyperscale cloud providers will continue to spend at the same breakneck pace on AI infrastructure, as well as escalating competition from Chinese alternatives like Huawei's Ascend chips.

Nvidia CEO Jensen Huang has projected a chip demand backlog of $1 trillion through 2027, with each AI factory potentially costing $100 billion to build.