NVIDIA Slides 3% as Tech Selloff Deepens Amid Fed Jitters

NVIDIA shares fell 3% Tuesday, extending the tech sector's retreat as investors grapple with hawkish Fed signals and cooling AI euphoria. The chipmaker's decline mirrors broader pressure on growth stocks, with the Nasdaq Composite dropping for a second consecutive session.

Once the undisputed leader of the AI infrastructure boom, NVIDIA now faces intensifying competition in semiconductor markets. While its stock remains up 8% year-to-date, this pales against rivals like AMD and Micron—a sign the market is pricing in a more fragmented AI chip landscape.

The selloff reflects macroeconomic anxieties more than company-specific weakness. Last week's Fed meeting reinforced expectations for prolonged higher rates, triggering profit-taking in this year's high-flying tech names. NVIDIA's 900% five-year rally now confronts the reality of tighter monetary conditions and maturing AI adoption curves.