Nvidia Stock: Tech Giant Tumbles in Market Sell-Off

Nvidia shares plunged 5.1% on Monday as part of a broader technology sector downturn that saw the NASDAQ Composite drop by 4%. The sell-off intensified following comments from US President Donald Trump, who didn't rule out a temporary recession as part of his economic agenda. This statement amplified investor concerns about future economic growth and the potential inflationary impact of Trump's proposed tariff policies. Other semiconductor heavyweights felt similar pressure, with Broadcom falling 5.3% and AMD declining 3.7%. The significant drop pushed Nvidia below its critical 200-day moving average, a technical indicator that many market participants interpret as particularly negative.

AI Enthusiasm Wanes Amid Economic Uncertainty

The steep decline in technology stocks partially reflects diminishing enthusiasm for artificial intelligence investments that had previously driven prices to record highs in recent months. Market nervousness has been fueled by uncertainty surrounding the Trump administration's economic policies, particularly after weekend statements suggesting potential short-term economic turbulence. Despite the current market weakness, Nvidia's long-term outlook remains supported by increasing demand for AI infrastructure, including data centers and high-performance servers. Investors are now evaluating whether this downturn represents a temporary correction or the beginning of a longer decline in the technology sector, particularly for export-dependent companies vulnerable to trade policy shifts.