NVDA Meltdown is a Warning Shot for Big Tech Investors

Nvidia (NASDAQ:NVDA) has had a rough couple of days in the share market, down 22% in just a couple of days. The whole AI sector is down with it. This isn’t just about one company—Nvidia’s fall matters because of its outsized role in the AI economy and its massive weighting in the NASDAQ index - about 9%.

Its chips power everything from data centres to autonomous vehicles, and when its valuation wobbles, it shakes confidence in the entire ecosystem. In addition to this, its reliance on China for growth and the rising competition from Chinese chipmakers are a recipe for sector-wide turmoil.

NVDA has boomed on the back of the rise of cryptocurrency and AI. It's been one of the most hyped and heavily overvalued stocks for several years.

And it's consistently validated those valuations with astronomical growth.

It's hard to find a better success story for the past decade. Needless to say, it attracts attention when we see such a massive fall.

So, what the hell just happened? Is this the start of the next market meltdown, or just another bump in the road for growth stocks?