Shares of AI chipmaker Nvidia plunged on Wednesday, dropping by over two percent in early trading. A major tech selloff caused major players in the AI industry to lose out big. Nvidia, in particular,

The Chinese impact on Nvidia is significant. KeyBanc raised its Q2 revenue estimate to $47.1 billion from $45.1 billion, above Wall Street’s consensus of $45.7 billion. It raised earnings per share to $1.05 from $0.99, slightly above consensus of $1.00.

The National Science Foundation and NVIDIA are investing $152 million in an open-source AI initiative led by Ai2, delivering reproducible AI models to accelerate scientific discovery and reshape enterprise IT strategies.

The other scorching-hot artificial intelligence stock that stands out in Nvidia's $4.33 billion investment portfolio is semiconductor colossus Arm Holdings ( ARM -5.00%). Nvidia closed out June with the same number of shares of Arm as it had in March (1,101,249), which worked out to a market value of $178.1 million.

U.S. technology shares are showing signs of vulnerability after a massive run, which has some investors pointing to overdone AI-driven gains while funds have taken steps to position away from the high-flying sector.

Palantir Technologies fell for the sixth straight session, its longest losing streak of the year, dragging the AI-enabled consulting firm's shares into bear-market territory, more than 20% below its recent peak, at one stage.

Investor euphoria over artificial intelligence is cooling as market concentration and disappointing corporate returns raise bubble concerns — punishing AI-dependent stocks and prompting a shift toward fundamentals.

Nvidia ( NVDA 0.94%) owns stock in publicly traded companies as part of its treasury strategy. Its $4.3 billion portfolio included six positions as of the June-ending quarter, but two accounted for 95% of invested assets: 91% was allocated to CoreWeave ( CRWV -3.17%) and 4% was to Arm Holdings ( ARM 1.52%).

Liquid Web ’s latest AI hardware study surveyed 252 trained AI professionals, and found while Nvidia remains comfortably the most used hardware supplier, its rivals are increasingly gaining traction. Nearly one third of respondents reported using alternatives such as Google TPUs, AMD GPUs, or Intel chips for at least some part of their workloads.

Palantir shares have fallen around 15% across the last five days of trading, completely erasing gains made near the start of the month.