NVIDIA shares fall 21% to $166.21 and hit bear market
NVIDIA's stock has slid 21% from its November high, closing at $166.21 and landing in bear market territory.
Even though NVIDIA's profits and margins look solid, investors are uneasy about how long its artificial intelligence hardware boom can last.
The rest of big tech isn't spared either: Microsoft has declined about 34%, while Meta has fallen about 29%, while Amazon, Apple, and Tesla are all down in double digits.
Investors doubt US $650B AI investments
A major reason for the sell-off? Doubts about whether massive investments in artificial intelligence will actually pay off.
US tech companies are expected to invest more than $650 billion in data centers and AI infrastructure, an unprecedented level of spending, but many investors aren't sure if those bets will deliver the returns everyone hopes for.