Nvidia stock dips following CEO keynote; AI cost concerns weigh

Nvidia NVDA.O stock down 2.4% after CEO Jensen Huang said the chipmaker is well-placed to navigate a shift in the AI industry amid worries about overspending

Speaking at company's annual software developer conference, Huang defended the NVDA's lead in AI chips after China's DeepSeek in January unveiled a competitive chatbot, raising concerns that Microsoft MSFT.O, Amazon AMZN.O and other heavyweight AI cos may be spending too much on NVDA's top-shelf AI processors

Shares of NVDA were already down before Huang's keynote

Huang announced new chips, including its next GPU chip Blackwell Ultra, which he said would be available in the second half of this year

NVDA stock down ~14% YTD, underperforming Nasdaq .IXIC, which fell 9% in same period

Stock recently traded at 25x expected earnings, below 5-year avg. forward PE of 40, according to data compiled by LSEG