Nvidia's stock tumbled more than 5 percent on Thursday, as investor concerns over its long-term position in the artificial intelligence (AI) sector overshadowed another round of robust quarterly earnings, according to CNBC.

Despite posting strong financial results, the U.S. chipmaker failed to fully reassure Wall Street at a time of broader market fragility. Growing unease over AI-related disruption – spanning industries from logistics to software – has weighed on sentiment this year. Elevated valuations and heavy capital expenditure have also pushed expectations to demanding levels.

Questions are emerging about potential risks to Nvidia's long-held dominance in AI chipmaking. Reuters reported that smaller rival AMD is preparing to unveil a new flagship AI server later this year and has secured deals with some of Nvidia's top customers, including Meta.

Market attention has now shifted from short-term performance to the sustainability of AI investment, Richard Clode, a portfolio manager at Janus Henderson, told CNBC. He pointed to uncertainties surrounding quantum computing, revenue generation and possible pressure on cash flows as key issues under increasing scrutiny.

Thursday's decline marked Nvidia's worst trading session since April. The sell-off spread across the semiconductor sector, with the shares of Broadcom, an AI chip designer, falling more than 3 percent.

Meanwhile, investor enthusiasm for AI-related stocks in Hong Kong has remained strong through the Chinese New Year holiday. MiniMax and Zhipu have emerged as standout performers.

On February 20, the first trading day of the Year of the Horse, shares of both companies posted sharp gains. Zhipu surged 42.72 percent to HK$725, while MiniMax climbed more than 14 percent to HK$970, according to China Venture Capital.

Their strong market performance highlights continued investor appetite for China's leading AI models, underscoring the sector's sustained momentum despite global market volatility.

Zhipu, an AI company, also known as Knowledge Atlas Technology, was officially listed on the Hong Kong Stock Exchange on January 8, 2026, at an issue price of HK$116.20 per share, according to Reuters.