Tech stocks continued to slide on Wednesday as investors sold off AI names amid concern over the sustainability of the AI boom.

The National Science Foundation and NVIDIA are investing $152 million in an open-source AI initiative led by Ai2, delivering reproducible AI models to accelerate scientific discovery and reshape enterprise IT strategies.

Nvidia Corporation shines as a top AI infrastructure pick, driven by strong fundamentals, strategic moves, and growth catalysts. Click for my NVDA earnings preview.

Shares of AI chipmaker Nvidia plunged on Wednesday, dropping by over two percent in early trading. A major tech selloff caused major players in the AI industry to lose out big. Nvidia, in particular,

Amidst escalating geopolitical tensions, NVIDIA continues its ambitious push in China, unveiling plans for the B30A AI chip—an advanced counterpart to the H20—aiming to secure market share against local competitors while navigating complex export control regulations.

The Chinese impact on Nvidia is significant. KeyBanc raised its Q2 revenue estimate to $47.1 billion from $45.1 billion, above Wall Street’s consensus of $45.7 billion. It raised earnings per share to $1.05 from $0.99, slightly above consensus of $1.00.

Liquid Web ’s latest AI hardware study surveyed 252 trained AI professionals, and found while Nvidia remains comfortably the most used hardware supplier, its rivals are increasingly gaining traction. Nearly one third of respondents reported using alternatives such as Google TPUs, AMD GPUs, or Intel chips for at least some part of their workloads.

Investor euphoria over artificial intelligence is cooling as market concentration and disappointing corporate returns raise bubble concerns — punishing AI-dependent stocks and prompting a shift toward fundamentals.

Tech stocks were under pressure this week as Wall Street’s AI enthusiasm slowed and investors adjusted portfolios after a strong summer rally.

Nvidia is developing a new artificial intelligence chip for China based on its latest Blackwell architecture that will be more powerful than the H20 model it is currently allowed to sell there, two people briefed on the matter said.

The other scorching-hot artificial intelligence stock that stands out in Nvidia's $4.33 billion investment portfolio is semiconductor colossus Arm Holdings ( ARM -5.00%). Nvidia closed out June with the same number of shares of Arm as it had in March (1,101,249), which worked out to a market value of $178.1 million.