President Donald Trump called Nvidia CEO Jensen Huang during the All-In Summit on Monday. During the live conversation, Trump dismissed concerns about artificial intelligence, labeling fears of AI dominance as a hoax and emphasizing the economic value of data centers. Trump also stated that AI development is critical to prevent China from gaining a competitive advantage in the sector.
Despite the public support from the president, Nvidia shares declined during the trading session. On Monday afternoon, the stock traded near $211.81, representing a 3% drop from the Friday close of $218.29. The broader semiconductor market also faced pressure, with Intel shares falling by 7% and Advanced Micro Devices losing 6%.
The iShares Semiconductor ETF, which tracks the sector, recorded a 6% decline. Market analysts suggest the sell-off was driven by investor reactions to an essay by Anthropic CEO Dario Amodei, who advocated for a slower pace in AI model development. This position has received support from industry figures including Sam Altman and Elon Musk.
Some market observers, such as investor Michael Burry, attribute the recent volatility to the unwinding of crowded trades rather than a fundamental decrease in demand. Despite the market movement, reports indicate that the order book for Nvidia remains unchanged, highlighting a divergence between political rhetoric and investor sentiment.
