Nvidia Stock: Institutional Selloff Sparks Uncertainty Amid AI Boom

Nvidia, the artificial intelligence chip giant, faces a paradoxical situation as its stock experiences both significant growth and recent turbulence. Despite an impressive year-to-date gain exceeding 130%, the company's shares have encountered a pullback of over 8% in the last quarter. This downturn has raised eyebrows among investors, particularly following Nvidia's latest financial report. While the company continues to post stellar results, concerns have emerged regarding potential cooling in AI demand and delays in the production of its new Blackwell AI system.

Major Investors Reduce Holdings

Adding to the uncertainty, several prominent investment firms have substantially reduced their Nvidia positions since the beginning of the year. Fidelity, previously Nvidia's fourth-largest shareholder, has cut its stake by nearly 20%. Other financial powerhouses, including GQG Partners and T. Rowe Price, have also offloaded significant portions of their holdings, with some reducing their positions by up to 93%. This institutional exodus has fueled speculation about Nvidia's long-term market prospects, although some market experts continue to view the company as a leader in the expanding AI sector.