Why is Nvidia stock falling today?

Nvidia (NASDAQ: NVDA) turned fast on Monday. The stock jumped about 3% soon after the opening bell rang, then dropped roughly 2% after the Groq news came out.

Earlier today, Nvidia announced its Groq 3 LPX rack is now being produced at scale, turning technology from the largest acquisition in Nvidia’s history into customer-ready hardware.

Nvidia spent $20 billion last December to buy assets from AI chip startup Groq. Those racks are headed to neocloud company Nebius Group (NASDAQ: NBIS), where they’ll work with Vera CPUs and Rubin GPUs.

Nvidia senior director Dion Harris told reporters it should be online later this year. Nvidia is going after faster inference, where speed matters for AI agents, especially coding systems that need to respond without long delays. Nvidia says cloud providers can charge more for tokens that come with stricter speed and latency requirements.

Nvidia is now worth close to $5.2 trillion, based on FactSet (NYSE: FDS) data, making it the biggest company worldwide by market value. The shares were up nearly 7% in August through Friday’s close, while the S&P 500 had risen around 2.5%.

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