Nvidia (NVDA) stock took a hit earlier this year after Chinese startup DeepSeek unveiled a low-cost AI chatbot, threatening its dominance. Kim Forrest, Chief Investment Officer, Bokeh Capital Partners,

The chip maker’s stock plunged after reports about the Chinese artificial-intelligence model raised fears about spending on AI infrastructure.

U.S. stock futures edged higher Thursday night after a sharp decline on Wall Street, driven by Nvidias steep losses despite strong earnings. Investors remain cautious ahead of the upcoming PCE inflation report.

What Happened? Shares of leading designer of graphics chips Nvidia (NASDAQ:NVDA) fell 6.9% in the afternoon session after the company reported Q4 2024 earnings: Additionally, concerns about the company's performance in China may be weighing on sentiment.