AI Stock Crash? Nvidia's $4 Trillion Rally Faces Correction Amid Concerns

• Nvidia's stock, a leader in the AI boom, saw a historic $4 trillion rally but recently declined by 9% from its peak, wiping out $490 billion.
• Investors are concerned about a potential slowdown in AI spending by major tech companies, which could impact Nvidia's orders and share price.
• Competition is intensifying with AMD gaining ground and major customers like Alphabet, Amazon, Meta Platforms, and Microsoft developing their own AI chips to reduce costs.
• Nvidia's gross margins are projected to temporarily dip in FY26 due to increased costs for Blackwell series chips, raising market alert.
• Despite current volatility, Wall Street analysts largely maintain a 'Buy' rating, citing strong projected sales/profit growth and CEO's confidence in growing AI demand.

Why It Matters: Nvidia's stock decline is likely a correction after a massive rally, but competition and AI spending need monitoring.