Why Nvidia (NVDA) Declined on Wednesday?

We recently published a list of These 10 Stocks Were Wednesday’s Worst Performers. In this article, we are going to take a look at where Nvidia Corporation (NASDAQ:NVDA) stands among Wednesday’s worst-performing stocks.

The stock market declined on Wednesday, with all major indices finishing in the red, driven by losses in technology stocks.

The Nasdaq dropped 0.51%, while the S&P 500 and Dow Jones fell 0.47% and 0.31%, respectively.

Ten companies, mostly from the technology sector, led the downturn.  In this article, we will highlight the biggest decliners and examine the factors driving their performance.

To identify Wednesday’s biggest losers, we focused on stocks with a market capitalization of at least $2 billion and a daily trading volume of over $5 million.

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

Nvidia Corporation (NASDAQ:NVDA)

Technology giant Nvidia Corporation (NASDAQ:NVDA) fell anew on Wednesday, losing another 4.1 percent to finish at $123.7 apiece, as investors sold off positions while continuing to digest China’s new cost-effective artificial intelligence called DeepSeek.

Nvidia, a key player in powering OpenAI’s ChatGPT with its high-performance GPUs essential for training deep learning models, saw its valuation plunge by nearly $600 billion on Monday. The dramatic drop followed reports that DeepSeek, a new competitor, had been developed using inexpensive alternatives for just $5 million—far less than the $100 million OpenAI invested in training its model.

The news became a low blow to Nvidia and OpenAI, at a time when the US government is set to spend billions of dollars to bolster AI development in the country.

During his inauguration earlier this month, President Donald Trump announced a $500-billion investment in an AI infrastructure among companies namely OpenAI, Oracle, and SoftBank.

Overall, NVDA ranks 9th on our list of Wednesday’s worst-performing stocks. 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. 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 the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.