The sudden reversal shows how the hottest AI trade and top-performing stock of the year is colliding with a broader market rotation out of Big Tech.

Nvidia ( NVDA) may be the market's biggest AI stock, but institutional investors are still shying away. "NVDA is now the most under-owned large-cap tech stock," Morgan Stanley analyst Erik Woodring wrote in a note.

Nvidia stock was slightly down in early trading following a report it is developing a new chip for the Chinese market.

Just four Big Tech stocks — Nvidia, Microsoft, Meta, and Broadcom — account for 60 percent of the benchmark index’s total returns so far this year, according to a new analysis from DataTrek Research. They’re also responsible for pushing headline valuation levels to dot-com bubble levels.

Nvidia's stock was falling 3.2% in recent trading, enough to push it below its 20-day moving average ($178.49) -- a short-term trend tracker -- for the first time since April 23. That snaps an 80-session streak above the 20-DMA,

The S&P 500 slipped 0.4% and is on track for a third straight modest loss after setting its all-time high last week. The Dow Jones Industrial Average was up 8 points, or less than 0.1%, as of 11:50 a.m. Eastern time, and the Nasdaq composite was down 1%.

Nvidia is set to beat expectations, with strong revenue forecast of $48b for Q2 and expected growth through 2026, driven by demand for AI and new Blackwell architecture.

Is the good news fully priced in? Explore key insights on demand, stockpiling, and margins. Read why NVDA is a Hold.