The chip maker’s stock plunged after reports about the Chinese artificial-intelligence model raised fears about spending on AI infrastructure.

Recent data shows that stock pickers are holding their smallest share of megacap names since the global financial crisis, and have found that the strategy is helping their performance. And that means that, while Nvidia’s earnings report was good, it is unlikely to reignite the Magnificent Seven.

Nvidia, the chip giant at the heart of the artificial intelligence (AI) boom, said its business remained strong, despite fears of a bubble stirred by the emergence of Chinese AI firm DeepSeek last month.