Nvidia (NASDAQ: NVDA) shares fell 3.5% on Tuesday, closing at $175.64, as tech stocks broadly pulled back following a recent rally. The chipmaker traded 183 million shares, just above its three-month average of 181 million, signaling a cooling of momentum after reaching record highs earlier this month.

In morning trades on the stock market today, Nvidia stock fell roughly 2% to 172.33. On Tuesday, Nvidia dropped 3.5% to close at 175.64. Other AI stocks falling on bubble fears include Advanced Micro Devices AMD, Broadcom AVGO, Dell Technologies DELL, Palantir Technologies PLTR and Super Micro Computer SMCI.

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,

This AI infrastructure play has delivered bigger gains than its larger peers since going public earlier this year.

A Pivotal Moment for Nvidia As the summer earnings season winds down, Big Tech giants like Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL) have delivered robust quarterly results,

The sudden reversal shows how the hottest AI trade and top-performing stock of the year is colliding with a broader market rotation out of Big Tech.

Nvidia, Palantir and other superstar AI stocks are under pressure again and dragging Wall Street lower. The S&P 500 fell 0.6% Wednesday and was on track for a fourth straight

Nvidia ( NVDA) may be the market's biggest AI stock, but institutional investors are still shying away. "NVDA is now the most under-owned large-cap tech stock," Morgan Stanley analyst Erik Woodring wrote in a note.

Just four Big Tech stocks — Nvidia, Microsoft, Meta, and Broadcom — account for 60 percent of the benchmark index’s total returns so far this year, according to a new analysis from DataTrek Research. They’re also responsible for pushing headline valuation levels to dot-com bubble levels.