Nvidia Tumbles Amid AI Safety Concerns as Senate Prepares Crypto Regulation Vote

Nvidia shares took a hit after prominent tech figures called for a slowdown in advanced AI development due to safety risks, sparking a broad semiconductor selloff.

The Philadelphia Semiconductor Index fell 5.9%, with AMD, Broadcom, and Micron also dropping.

However, Nvidia CEO Jensen Huang argued that the US can build AI safely without losing its lead, echoing President Trump's view that slowing down AI development could let China pull ahead.

Nvidia shares recovered slightly on Tuesday, but the debate signals a new risk for investors following the AI trade.