Key Takeaways Nvidia shares tumbled Wednesday, dashing hopes for a quick recovery from losses earlier in the week amid concerns about competitiveness of American AI firms and their spending on artificial intelligence.

Nvidia stock declined on Wednesday, even as strong earnings from ASML Holding lifted shares of other chip makers. Shares of Nvidia made a strong 9% comeback Tuesday after a 17% drop on Monday. However,

Shares of Nvidia ( NVDA -5.29%) were sinking Wednesday. The company's stock fell 6.2% as of 2:20 p.m. ET, but lost as much as 6.9% earlier in the day. The move comes as the S&P 500 ( ^GSPC -0.39%) and Nasdaq Composite ( ^IXIC -0.54%) lost 0.8% and 1.1%, respectively.

US stocks and shares in chip-making giant Nvidia on Tuesday clawed back some of their losses following a steep sell-off a day earlier triggered by the sudden success of Chinese

the chip maker saw its market value drop by $593 billion, the biggest one-day drop for any listed company on record.

Retail investors rushed into Nvidia on Monday, signaling Main Street support for the chipmaker despite the emergence of an artificial intelligence model from China that battered its shares and caused a historic,