While artificial intelligence has been one of the hottest topics in the business ecosystem, it's not without its challenges. Six months following its high-profile announcement at the White House, the $500 billion Stargate project — a joint venture between OpenAI and SoftBank — has encountered significant delays and scaled-back ambitions. On paper, the initiative was supposed to bolster AI-based infrastructure in the U.S. With the effort struggling, semiconductor companies — including mighty Nvidia Corp (NASDAQ:NVDA) — sold off.
Following the Stargate news, NVDA stock dropped 2.54%, bringing its trailing five-day performance down to a loss of 2.35%. Still, investors aren't exactly in panic mode. Since the start of the year, NVDA has gained more than 24% — and that's despite the security encountering a bearish trend channel heading into late April. The recovery in NVDA demonstrates that investors tend to view dips as discounts.
