NVIDIA is trading 3.3% down at $200.50 in pre-market, extending a recent pullback in AI chip names as sector-wide sentiment cools.
- Semiconductor stocks are broadly selling off on concerns regarding stretched valuations and the long-term sustainability of the AI infrastructure boom.
- The downturn is exacerbated by rising capital expenditure led by TSMC and a sharp decline in the SOXX, with Nasdaq futures signaling a lower open.