Nvidia's AI delays are crushing the stock — but Apple's $30B Broadcom deal signals the chip rotation trade
Nvidia is getting hammered by delays to its next-generation AI hardware, wiping $1 trillion off its value and sending its stock price back to levels not seen since before the AI craze. At the same time, Apple just committed $30 billion to Broadcom for U.S.-made chips, signaling that massive AI chip spending isn't disappearing — it's shifting to suppliers who can actually deliver on time.
Idea
Nvidia's next-gen AI server rack is delayed until 2028 due to manufacturing problems, compounding a brutal $1 trillion slide in Nvidia's market value. Meanwhile, Apple just announced a $30 billion deal with Broadcom to produce chips in Colorado. The combination reveals a clear rotation: the AI spending boom isn't dying, but the money is pivoting away from Nvidia's delayed roadmap toward suppliers like Broadcom who can actually deliver. This is a classic 'winner stumbles, runner-up catches the baton' setup.