Nvidia shares fell nearly 3% in Wednesday trading, dropping $5.89 to $191.12 and extending a sharp two-day decline. The pullback has erased an estimated $238 billion in market value, making Nvidia stock one of the main focuses on Wall Street as investors reassess the AI trade.
The latest move comes just ahead of earnings from Microsoft and Meta, two major companies tied closely to AI infrastructure demand. Their results are being watched for fresh signals on how aggressively big technology groups plan to keep spending on data centers, chips and related AI build-outs.
Investor caution has also increased around concerns tied to AI financing, including worries about whether parts of the spending cycle are becoming too dependent on interconnected funding expectations. At the same time, geopolitical challenges are adding another layer of pressure to sentiment around Nvidia and the broader semiconductor sector.
The selloff stands out because it comes despite Nvidia's strong financial performance and generally positive analyst views. For now, the market appears focused less on past results and more on whether AI spending can stay strong enough to support the sector's recent valuation gains.
