Nvidia has lost $1 trillion in market value since January, is AI losing its mojo? Here’s what’s behind the drop

Nvidia has lost over $1 trillion in market value since January 2025, with its stock plummeting 27%. This decline raises concerns about AI’s long-term profitability as Microsoft halts new data center projects, signaling a slowdown in AI infrastructure investments. CoreWeave’s weak IPO and inflation pressures are further eroding investor confidence. With rising competition from emerging AI models like DeepSeek, Nvidia’s dominance in AI hardware is under threat. While AI remains a transformative force, Nvidia’s massive decline suggests that AI’s rewards may take longer to materialize than expected.