Nvidia (NVDA) stock fell as much as 4% Wednesday as news from Wall Street and Washington spurred fears of moderating AI demand and tightening chip trade rules from the Trump administration.
Nvidia customer Super Micro Computer (SMCI), which makes servers using Nvidia’s designs to sell to data center operators and tech firms, cut its revenue and profit outlook for the third quarter — the latest news to signal a wider potential pullback in demand for AI infrastructure.
Super Micro stock dropped 12% on Wednesday.
Nvidia stock pared losses later in the day and ended the trading session flat. Shares are down nearly 19% in 2025, and the AI darling than was issued a rare Sell rating by analysts at investing firm Seaport Wednesday, who said that the benefit of AI to tech stocks has been priced in for now.
Tech stocks were also under broad pressure amid a market sell-off spurred by negative news early Wednesday on US economic growth and the state of the labor market.
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