Shares of Nvidia, the chipmaker at the center of the artificial intelligence boom, have fallen below $200 and are approaching what analysts call bear market territory, according to a report from 24/7 Wall St. that was also carried by Yahoo Finance.
The move is notable because Nvidia has been one of the market's biggest winners of the AI era, its chips powering the data centers behind tools like chatbots and image generators. A slide toward a bear market — a term generally used for a decline of roughly 20% or more from a recent high — marks a sharp shift in sentiment toward a stock that investors had treated as nearly unstoppable.
According to the coverage syndicated to Yahoo Finance, the broader market has entered an unusual phase in which investors are no longer rewarding every company simply for being tied to artificial intelligence. Instead, the report says, capital is becoming more selective, with money flowing toward some opportunities and away from others rather than lifting the entire sector at once.
The source piece frames its central question as how much further Nvidia could fall, signaling uncertainty about where the stock finds a floor. The items provided do not include specific price targets, percentage declines, or company comment, so the depth and timing of any further drop remain open.
Why it matters: Nvidia is so large and so closely identified with the AI trade that a wobble in its stock is widely read as a test of whether the market's enthusiasm for artificial intelligence is starting to cool.