Why Nvidia stock is down over 2% on Tuesday

Nvidia fell about 2% as a sharp rise in Treasury yields and a broader semiconductor selloff weighed on AI-chip names, despite no evidence of weakening underlying AI demand. The 30-year Treasury yield moved above 5.3%, fueling concerns about inflation and higher discount rates for growth stocks. The weakness hit the whole chip group, with names like Western Digital, Sandisk, Marvell, and Seagate also sliding. Even so, BofA reiterated a Buy rating and $350 target, arguing Nvidia’s frontier-AI spending commitments, GPU scarcity, and strong free cash flow support the stock on dips. Nvidia remains up more than 16% year to date and is set to report fiscal Q2 2027 results on August 26.