Nvidia Corp. is facing rising concerns that its stranglehold on the market for semiconductors used in artificial intelligence computing is slipping. And that skepticism is now showing up in the stock market.
Shares of the chipmaker fell 2.6% on Tuesday following a reportBloomberg Terminal suggesting that Alphabet Inc.’s AI processors are gaining ground. While the stock rose 2.2% on Wednesday, shares remain down 10% this month, erasing more than $500 billion in market value, as investors grow increasingly fearful of a bubble in AI spending as well as Nvidia’s circular investments in startups like OpenAI that are also customers.