Why tech stocks like Nvidia have been under pressure this week

A closer look at the recent market volatility for tech stocks like Nvidia, and experts weigh in on whether these companies are worthwhile investments despite the risks.

Technology stocks have been slipping over the last week, with companies like Nvidia and Tesla seeing sharp drops and spikes in value on a day-to-day basis.

With the addition of the uncertain trade war and tariff outlook that can have ripple effects on stock markets, you may be on edge as you watch your investments bounce through all of the volatility.

Although the short-term performance for these companies may seem shaky, some experts say the long-term potential for many tech stocks is still strong so long as investors have a solid strategy.

“The bar is very high (in the tech sector) and some of those expectations are just hard to meet when you get that large,” says Josh Sheluk, portfolio manager and chief investment officer at Verecan Capital Management.

“Despite the fact that there might be some risks associated with these companies, the stocks and the market in general have been doing quite well.“

Rapid developments in artificial intelligence (AI) have led to a massive surge in investor purchases of technology stocks over the past few years because of the long-term expectations and seemingly infinite potential.

Nvidia, which makes semiconductor chips and data centers that support AI systems, has seen its market capitalization grow to more than US$6 trillion in just a few years to become the world’s most valuable company — more than Microsoft and Apple.

“AI is driving the stock market, it’s driving the economy in a lot of ways right now, and it’s the tech sectors specifically, and Nvidia is kind of at the forefront of the AI push,” says Sheluk.