What Happened?
Shares of leading designer of graphics chips Nvidia (NASDAQ: NVDA) fell 4.1% in the afternoon session after the stock retreated amid renewed concerns about stretched valuations in the AI space and geopolitical concerns as the U.S. government reportedly moved to block the company from selling even its less powerful, scaled-down artificial intelligence chips to China. The decision was aimed at stopping the sale of a reconfigured version of the advanced Blackwell chip, which had been designed specifically to avoid previous U.S. export controls. Reinforcing the news, Nvidia's CEO Jensen Huang stated there were "no active discussions" about selling these chips to Chinese customers. The development hit investor sentiment at a time when there were already wider concerns about high valuations for AI-related stocks. The news also coincided with a broader sell-off in the technology sector, which added to the downward pressure on the stock.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Nvidia? Access our full analysis report here.
What Is The Market Telling Us
Nvidia’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 10 days ago when the stock gained 5.2% on the news that CEO Jensen Huang laid out an overwhelmingly bullish case for the company's future at a landmark GTC keynote in Washington, D.C.
The biggest news electrifying the market was Huang's declaration that NVIDIA had visibility on $500 billion of business over the next six quarters, citing unstoppable global demand for 'AI factories'. The company also announced major new partnerships, including a strategic alliance with Eli Lilly to build generative AI models and digital twins to revolutionize and accelerate the drug discovery process. Huang also detailed the company's expansion into new multi-billion dollar markets, including the $1 billion investment in Nokia to build AI-driven 6G networks and a major push into 'sovereign AI' where entire nations are buying NVIDIA's hardware. This combination of unprecedented forward-looking revenue guidance and strategic expansion into massive sectors like pharmaceuticals and global telecoms solidified the narrative that NVIDIA's AI dominance is still in its early stages.
Nvidia is up 32.6% since the beginning of the year, but at $183.45 per share, it is still trading 11.4% below its 52-week high of $207.04 from October 2025. Investors who bought $1,000 worth of Nvidia’s shares 5 years ago would now be looking at an investment worth $13,458.
While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report.
