Nvidia’s fourth-quarter earnings fell short of expectations, despite profits nearly doubling and sales hitting an all-time high. The company’s shares plummeted 5.5% in late trading, sparking a mood shift on Wall Street towards skepticism about the tech giant’s future.
The issue isn’t just Nvidia’s performance, but the broader AI trade. Investors are questioning whether AI is overhyped or will replace human labor, leading to potential economic collapse. Some are shorting shares of companies like Nvidia and OpenAI, while others are taking complex hedging strategies to mitigate losses.
Apple has bucked this trend, with its shares rising 7% in the past month as it avoids the hype surrounding AI spending. This shift reflects growing concerns about the sustainability of the tech boom, leaving investors on edge over potential market downturns.
Source: https://edition.cnn.com/2026/02/26/business/why-some-investors-see-trouble-in-paradise-after-nvidia-earnings