Nvidia Stock Sell-Off Hits Tech Markets Despite Record Profits

Recent sessions on the New York stock exchange have been marked by a sharp cooling of enthusiasm for the artificial intelligence sector. The central event was the publication of financial results by the Nvidia corporation, which is considered a barometer of modern technologies. Although the company beat market expectations, its share price fell by over 5% on Thursday, dragging down the entire Nasdaq index. Investors, accustomed to the previous euphoria, have begun to question whether the gigantic investments in computing infrastructure will translate into a quick return on investment. This skepticism was deepened by reports from other industry players, including forecasts of huge expenditures on developing production capacity, which could hit operating margins in the coming quarters. Since the 1990s, when the dot-com bubble led to rapid increases and a subsequent crash in technology company valuations, markets have treated periods of excessive capital concentration in one sector with great caution. The situation on Wall Street is impacting global markets, including Europe and Asia. Although stock exchanges in London and Paris had previously reached record levels, Thursday's session brought a demand hiccup. Investors are awaiting the US PCE index readings with growing anxiety, which are crucial for the Federal Reserve's decisions on interest rates. An additional risk factor remains Washington's trade policy and global customs tariffs, which introduce uncertainty into electronic component supply chains. The euro to dollar exchange rate remains around the 1.18 level, reacting to differences in economic dynamics between Poland, Europe, and the United States. „We are at the beginning of a new industrial revolution where data centers are becoming AI factories.” — CEO and co-founder of Nvidia, a key figure in the artificial intelligence sector. Analysts point out that the market has reached a saturation point for optimistic news. Currently, any information that is not spectacularly positive is treated as a signal to take profits. The sell-off of Nvidia, despite reporting record profits of around $330 million per day, shows how high investor expectations were. In the coming days, market attention will focus on macroeconomic data, which will determine whether the current correction will turn into a longer downtrend or will merely be a pause in the ongoing technology bull market.