NVIDIA shares plunge 3.82% as AI sector anxieties drive selloff

NVIDIA shares fell 3.815% in pre-market trading on December 18, 2025, as broader market anxieties over the AI sector’s near-term viability weighed on investor sentiment. The decline mirrored a sector-wide selloff, with peers like Oracle and CoreWeave also posting sharp losses.

Analysts attributed the drop to a recalibration of expectations amid growing skepticism about AI’s immediate profitability. Investors are increasingly questioning whether heavy debt-fueled investments in AI infrastructure will translate into sustainable returns, particularly as companies struggle to meet heightened profit targets.

This has led to a correction in valuations for tech firms previously buoyed by speculative bets on long-term AI potential.

The selloff extended to related industries, including energy providers linked to data center demand, further amplifying the sell-off. While the broader market faced its worst day in nearly a month, Nvidia’s steep decline underscored its pivotal role in shaping Wall Street’s tech-driven momentum. The move highlights a shift in focus from speculative growth narratives to tangible financial performance in the AI space.

With AI development costs mounting and near-term profits elusive, many investors are now looking for clearer signs of revenue traction. The market has begun to differentiate between firms with concrete AI monetization strategies and those relying on long-term hype. This distinction is likely to become more pronounced as earnings season approaches, with companies forced to prove their AI investments are delivering measurable value.