Nvidia's stock has fallen by 14% despite good numbers, reflecting the overall weak sentiment in US stock exchanges. There is hope for an interest rate cut due to a labor market report, but the semiconductor industry is under pressure.
Concerns about the overvaluation of AI stocks have also contributed to the decline. However, analysts expect an increase in Nvidia's stock, especially with the release of the new generation of 'Blackwell' chips.
The AI sector as a whole has suffered, with $279 billion in market value lost and an antitrust probe initiated. The market's fear gauge, VIX, has soared.
The recent decline in stocks is attributed to AI trade concerns, recession fears, and economic growth worries. Nvidia's sudden market value loss, the largest in history, has raised doubts about AI stocks' high valuations.
The US Justice Department has reportedly subpoenaed Nvidia as part of an antitrust investigation.
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