Nvidia Is Facing More Competition and It’s Spooking Investors

This earnings season has delivered plenty of good news for the artificial intelligence trade, but instead of bidding up Nvidia Corp. shares, investors have been dumping them.

Nvidia, whose graphics processing units, or GPUs, dominate the market for AI chips, has fallen 9% over the past six sessions after closing at a record high on April 27. Over that span, the stock is the third worst performer in the Philadelphia semiconductor index, which is up more than 5%.