Why NVIDIA Corporation (NVDA) Declined on Wednesday

The stock market fell sharply anew on Wednesday, with all major indices ending in the red, as investor sentiment was dampened by Federal Chairman Jerome Powell’s bearish comments on the US economy, saying that the US’ tariff policies could drive up inflation and “move us further away from our goals.”

The tech-heavy Nasdaq dropped the hardest, down 3.07 percent. The S&P 500 declined by 2.24 percent, and the Dow Jones was down by 1.73 percent.

To come up with the list of the stocks that declined on Wednesday, we only considered the stocks with $2 billion market capitalization and $5 million trading volume.

A close-up of a colorful high-end graphics card being plugged in to a gaming computer.

NVIDIA Corporation (NASDAQ:NVDA)

Chip giant NVIDIA Corporation (NASDAQ:NVDA) declined by 6.87 percent on Wednesday to close at $104.49 apiece as investors sold off positions after announcements that it would take a $5.5-billion financial beating from the US fresh restrictions on the export of its artificial intelligence chips to China.

NVIDIA Corporation (NASDAQ:NVDA) fell by more than 10 percent at intra-day trading before buying positions pushed the company’s stock price to end slightly higher.

In a regulatory filing, NVIDIA Corporation (NASDAQ:NVDA) said that it was told by the US government on April 9 to require a license to export H20 graphics processing units to China, Hong Kong, Macau, and D:5 countries, among others.

“The USG indicated that the license requirement addresses the risk that the covered products may be used in, or diverted to, a supercomputer in China. On April 14, 2025, the USG informed the company that the license requirement will be in effect for the indefinite future,” NVIDIA Corporation (NASDAQ:NVDA) said.

“The company’s first quarter of fiscal year 2026 ends on April 27, 2025. First quarter results are expected to include up to approximately $5.5 billion of charges associated with H20 products for inventory, purchase commitments, and related reserves,” it underscored.

Overall NVDA ranks 9th on our list of the stocks that declined on Wednesday. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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