Nvidia Corp (NASDAQ:NVDA) stock slid on Wednesday amid macro pressure, as tech stocks faced valuation concerns, worries about possible Federal Reserve rate hikes, and uncertainty over how quickly AI investments will generate returns. iShares PHLX SOX Semiconductor Sector Index Fund (NASDAQ:SOXX) is down almost 2%.
State Street SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust, Series 1 (NASDAQ:QQQ) were down less than 1%.
Nvidia CEO Jensen Huang said the recent global tech selloff created a buying opportunity because the AI infrastructure buildout is still in its early stages.
Huang told Bloomberg on Monday that investors should be "very happy" because the pullback lets them "buy at a discount," adding that "everybody should be very excited." He said AI will become global infrastructure "just like the internet was infrastructure for the world," reinforcing his view that demand for data centers and chips will continue to grow.
Technical Analysis Nvidia is sitting in a tight technical spot: it's about 5.7% below its 20-day SMA ($218.21), but essentially flat versus its 50-day SMA ($205.01), which often acts like a "line in the sand" during consolidations.
