The stock selloff came after Nvidia reported a 62% increase in sales of AI data center chips and raised its guidance for the current quarter. In recent sessions, investors have punished big tech, worried that some companies are spending too much on data centers, chips and other AI infrastructure with little hope of recouping their investments soon.

Nvidia's earnings report sparked some positive momentum for its stock on Thursday morning, sending it up as much as 5.1%, and bringing other technology stocks and the broader market up with it. By the afternoon,

Nvidia clearly delivered a strong quarter, with revenue of $57 billion (up 62% from one year ago) and earnings per share of $1.30 (up 67% YoY), surpassing analysts' expectations and predictions for about $55 billion and $1.26, respectively.

Nvidia shares were initially up after an earnings report that included raised revenue guidance for the next quarter. But shares closed 3% lower.

Nvidia Stock Jumped on Staggering Growth and CEO Jensen Huang's Bullish Comments. Is the Stock a Buy? Blistering data center growth and a pointed rebuttal of AI bubble fears just pushed this chip stock higher.

Chip maker Nvidia’s strong earnings and rock-solid guidance ease worries about an artificial-intelligence bubble.

NEW YORK (AP) — The U.S. stock market sank Monday as Nvidia and other superstars created by the frenzy around artificial-intelligence technology dimmed some more. The S&P 500 fell 0.9% and pulled further from its all-time high set late last month. The Dow Jones Industrial Average dropped 557 points, or 1.2%, and the Nasdaq composite sank 0.8%.

Major stock indexes closed higher Wednesday ahead of AI darling Nvidia's highly anticipated quarterly results after the bell, with the Dow Jones Industrial Average and S&P 500 snapping four-session losing streaks.

An early stock-market rally on Thursday has given way to broad-based selling as doubts about the artificial-intelligence trade re-emerged following the latest batch of earnings from Nvidia.