Shares of leading designer of graphics chips Nvidia (NASDAQ:NVDA) fell 3.5% in the afternoon session after investors took some profits off the table as markets awaited signals on future monetary policy from the Federal Reserve's Jackson Hole symposium later in the week.

Nvidia stock has rebounded from its lows earlier this year, and expectations are mighty high as earnings come into view. While competition is rising, Nvidia remains well positioned to capitalize on a number of emerging infrastructure opportunities.

A Pivotal Moment for Nvidia As the summer earnings season winds down, Big Tech giants like Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL) have delivered robust quarterly results,

The sudden reversal shows how the hottest AI trade and top-performing stock of the year is colliding with a broader market rotation out of Big Tech.

Nvidia ( NVDA) may be the market's biggest AI stock, but institutional investors are still shying away. "NVDA is now the most under-owned large-cap tech stock," Morgan Stanley analyst Erik Woodring wrote in a note.

The S&P 500 slipped 0.4% and is on track for a third straight modest loss after setting its all-time high last week. The Dow Jones Industrial Average was up 8 points, or less than 0.1%, as of 11:50 a.m. Eastern time, and the Nasdaq composite was down 1%.

Just four Big Tech stocks — Nvidia, Microsoft, Meta, and Broadcom — account for 60 percent of the benchmark index’s total returns so far this year, according to a new analysis from DataTrek Research. They’re also responsible for pushing headline valuation levels to dot-com bubble levels.

Should you Buy Or Fear Nvidia stock? For event-driven traders, historical trends might provide an advantage, whether by positioning prior to earnings or responding to post-release movements. That said,

Nvidia Corporation stock tumbled 3.5% on Tuesday, wiping out $155 billion in market capitalization. Nvidia stock logged its worst day since April 21 and seemingly also resulted from a broader market selloff as the drop four months ago.

Source: Nvidia. Note: Q1 2026 was released May 28, 2025; Q4 2025 was released Feb. 26, 2025; Q3 2025 was released Nov. 20, 2024; Q2 2025 was released Aug. 28, 2024. * Stock performance is for the 90 days following the report's release, except Q1 2026, which is performance only through Aug. 13, 2025. YOY = Year over year.

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