5 Factors Causing NVIDIA (NVDA) Shares to Fall – Here’s the Full Explanation

Jakarta, Pintu News – Nvidia Corporation (NVDA) has been the backbone of the GPU revolution and artificial intelligence technology. Apart from leading the gaming and computer graphics market, the company is also an important player in the AI, autonomous car, machine learning, and cryptocurrency sectors. However, despite its growth potential, NVDA stock has also experienced significant fluctuations over time.

Here are the five main factors that often cause NVIDIA stock to decline.

1. Dependence on Third Parties for Chip Production

Nvidia is a fabless company, meaning they don’t manufacture their own chips. All chip designs are handed over to be manufactured by third parties such as TSMC and Samsung Electronics. When there are global supply chain disruptions, such as during the pandemic, chip production is disrupted and has a direct impact on the performance and delivery of Nvidia products.

According to a report from Investopedia, reliance on outside manufacturing makes Nvidia more vulnerable to production delays, rising costs, and supply fluctuations that affect investor confidence.

Also Read: How to Buy NVIDIA Shares in Indonesia (2025) – Complete Step-by-Step!

2. Cryptocurrency Market Volatility

Nvidia GPUs are popular among crypto miners due to their ability to process complex data. However, demand from the crypto sector is cyclical and highly volatile. During bull markets, demand for GPUs soars, but when crypto prices fall, demand can drop dramatically.

According to records from the SEC, Nvidia has even been fined for failing to transparently disclose cryptocurrency mining’s contribution to their revenue. These fluctuations sparked concerns that some of their revenue growth was unsustainable.

3. Regulatory Pressure and Failed Strategic Acquisitions

In 2020, Nvidia announced plans to acquire Arm Ltd. for $40 billion. However, in 2022, the acquisition was officially canceled due to pressure from regulators in various countries over competition concerns.

Failure of a major acquisition like this creates negative sentiment in the market, especially since Arm is considered a strategic asset that can strengthen Nvidia’s dominance in the AI sector. Regulatory uncertainty like this often triggers sell-offs by institutional investors.

4. Competitive Pressure from Other Chip Giants

Nvidia operates in a highly competitive industry, competing fiercely with companies like AMD, Intel, and various new AI chip manufacturers. Rapid innovation in this sector means that technological advantages are quickly shifting.

If Nvidia fails to maintain its performance advantage or cost efficiency, investors may doubt the company’s long-term competitiveness. According to 2021 financial data, although Nvidia generated $4.3 billion in net income, investors remain wary of threats from competitors with aggressive strategies and disruptive innovations.

5. Overvalued Stock

NVDA stock often trades at a high P/E ratio, reflecting expectations of huge future growth. However, these high valuations also mean great pressure when there are earnings reports that fall below expectations.

For example, even though Nvidia recorded high quarterly earnings in Q3 FY2022, the stock price still fell because investors thought the growth was already “priced in.” In the world of capital markets, stocks with premium valuations tend to correct more easily.

Buying NVIDIA Shares in Indonesia is Easy!

Nvidia (NVDA) remains a leading technology company at the forefront of GPU, AI and crypto innovation. However, investors need to realize that even a stock as strong as Nvidia has its risks – from external pressures such as regulation and competition, to internal ones such as operational structure and dependence on certain markets.

So, for those of you who are asking “where to buy NVIDIA stock?”, the answer is: you can use investment apps like Pintu, which provides stocks in the form of digital assets(XStocks) such as xStocks NVIDIA (NVDAX), Tesla (TSLAX), Apple (AAPLX) and many more.

No need to worry about the minimum purchase of NVIDIA shares, because with the tokenization model, you can start from a very small amount-even without having to buy 1 full share.

Also Read: 3 Reasons Bitcoin’s Rise to $125,000 Could Be Delayed – Watch Out For These Signals!

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Investopedia. Investing in Nvidia Stock. Accessed on October 15, 2025