Nvidia shares fell 3.8% as renewed AI spending skepticism pressures chipmaker

Nvidia shares fell 3.8% in pre-market trading on Dec. 18, 2025, as renewed skepticism over artificial intelligence spending pressured the chipmaker and broader tech sector.

The decline mirrored broader market jitters, with chipmakers and cloud companies facing heightened scrutiny. Concerns over the sustainability of AI-related capital expenditures and balance sheet strains have led traders to scale back exposure, signaling a shift in conviction for the sector’s crowded AI-driven rally. Nvidia’s drop was part of a wider selloff, as peers like Broadcom also slid, dragging the chip index nearly 4% lower.

Investor sentiment has turned cautious amid reports of stalled AI infrastructure projects and rising costs. Oracle, for instance, fell 5.4% after its $10 billion data center initiative lost key funding support. Analysts note that while AI remains a transformative force, the market is no longer treating it as a guaranteed growth engine, demanding clearer returns on massive investments before resuming aggressive bets.

Energy stocks and defensive plays offered limited relief, with oil prices rebounding on geopolitical tensions. However, tech remains central to market dynamics, with upcoming inflation data and central bank policy decisions likely to shape near-term risk appetite. For now, traders are adopting a selective approach, prioritizing liquidity and shorter-term positioning over long-term AI exposure.