• Nvidia shares fell 3.6% at the open, the biggest one-day decline since April 30, as tech investors rotated out of high-growth names.
  • The drop comes despite strong underlying demand for Nvidia's AI chips, with analysts attributing the move to broader market risk-off sentiment.
  • CEO Jensen Huang did not comment on the selloff, but the company faces ongoing regulatory scrutiny over chip exports.

Market Jitters Hit AI Darling

Nvidia Corp. shares tumbled 3.6% at the opening bell on Thursday, their steepest intraday slide since late April, as a wave of selling swept through technology stocks. The decline erased roughly $80 billion in market value from the chipmaker, which has been at the forefront of the AI boom.

The move was part of a broader tech selloff, with the Nasdaq Composite falling 2.1% as investors rotated into defensive sectors. “It’s a classic risk-off day,” said a trader who asked not to be named. “Nvidia has been a high-beta name, so it gets hit disproportionately when sentiment shifts.”

The drop comes even as Nvidia continues to report robust demand for its data-center chips, which power AI workloads. The company posted record revenue of $30 billion in its most recent quarter, up 122% year over year, and guided for further growth in the current period. Gross margins remain above 75%, underscoring its pricing power.

Export Controls Loom

Regulatory overhang also weighed on sentiment. The Biden administration has been tightening export controls on advanced semiconductors to China, a key market for Nvidia albeit one that accounted for a declining share of sales. Reports emerged this week that the U.S. is considering additional restrictions on chip technology transfers, potentially affecting Nvidia’s ability to sell its H100 and upcoming B200 chips to Chinese customers.

“Nvidia is caught between massive AI demand and geopolitical headwinds,” said an analyst at a major investment bank. “The long-term story is intact, but near-term volatility is inevitable.”

Nvidia declined to comment on the stock move or regulatory developments.

Broader Tech Turmoil

The selloff was not isolated to Nvidia. Peers Advanced Micro Devices Inc. and Intel Corp. also fell, though by lesser margins. The semiconductor index dropped 1.8%, reflecting concerns about demand sustainability and valuation.

Some investors saw the pullback as a buying opportunity. “Nvidia’s fundamentals are as strong as ever,” said a portfolio manager at a growth-focused fund. “Days like this are noise in the long run.”

Still, the stock has been volatile in recent months, swinging sharply on earnings, AI hype cycles, and interest rate expectations. Thursday’s decline marks the latest reminder of the risks in high-growth names, even those leading a technological revolution.

This article has been updated to reflect market data as of 10:30 a.m. ET.