NVIDIA (Nasdaq: NVDA) may be paying the price for being too successful.
Shares of Nvidia and other Big Tech stocks have helped power the markets run to record highs this year. Their recent wobble is making investors nervous.
The United States stock market sell-off escalated following a subpoena issued by the Department of Justice (DoJ) to semiconductor giant Nvidia (NASDAQ: NVDA). Given Nvidia's significance in the stock market, its legal woes will likely escalate losses for many equities.
Nvidia (NVDA) shares lost ground Wednesday, extended Tuesday's losses following reports U.S. regulators sent subpoenas to the maker of artificial intelligence (AI) chips as part of an antitrust investigation.
The Cboe Volatility Index (VIX) jumped Wednesday, extending yesterday's rise amid a semiconductor selloff that weighed on the broader market.
There is a group of investors who, for whatever reason, dislike buying high-priced stocks.
The antitrust watchdog had previously delivered questionnaires, and has now sent legally binding requests to Nvidia, according to Bloomberg News.
Chip companies led by market cap leader Nvidia were set to extend losses on Wednesday after a bruising sell-off in the previous session, reflecting the growing concern on Wall Street over the stocks' lofty valuations as AI optimism cools.
Despite NVIDIA stock's previous meteoric rise, recent market conditions have led reassessment among Tiger 21 members regarding the sustainability of Nvidia's success over the next decade.
Investors need more confidence in the gross-margin trajectory once Blackwell volumes ramp up, and they'll also be looking for more proof that AI is generating customer returns.
Few people would dispute the fact that Nvidia Corp.
Nvidia Corporation has been a Wall Street darling for the past few years. The company has quickly become the AI hardware king, as its powerful chips are critical for running advanced artificial intelligence-powered platforms and services, like ChatGPT.