AI stocks under pressure, Nvidia drops 5.5% after earnings. We analyze whether the AI bubble is bursting or this is just a correction.
Nvidia dropped 5.5% after reporting Q4 2025 results - even though the revenue forecast beat expectations. The market spoke clearly: hype isn't enough. Time for profits.
Meanwhile, software companies like Salesforce, Thomson Reuters, and PayPal recorded double-digit drops. Investors began pricing in a real threat: AI could replace products they'd been paying billions for.
This is the natural evolution of every technology cycle. The comparison to the dot-com bubble of 2000 is tempting but imprecise - unlike that era, AI companies (especially Nvidia) generate real, massive revenue.
Alphabet, Amazon, and OpenAI are investing heavily in ASICs (Application-Specific Integrated Circuits) - specialized chips cheaper than Nvidia's GPUs. This is a long-term threat to Nvidia's dominance, though not immediate.
Nvidia is valued at approximately 25x forward revenue. Is that expensive? Compared to traditional industry - yes. Compared to a company dominating the AI infrastructure market - debatable.
History suggests that 10-20% Nvidia drops have occurred regularly over the past 3 years - and each time the price recovered higher. But history isn't a guarantee.
Volatility in tech stocks spills over into indices (Nasdaq, S&P 500), which in turn affect currency and commodity markets. A professional trader doesn't trade in isolation - they see connections.
At PropGate, we analyze cross-market correlations to capitalize on opportunities that arise during precisely these moments of uncertainty.
Market data as of publication date. Past performance does not guarantee future results.
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