Nvidia Stock Drops. Why Its 7-Day Winning Streak Is Ending.

Nvidia CEO Jensen Huang. The chip maker’s shares are on a six-day winning streak. (I-Hwa Cheng/AFP via Getty Images)

Nvidia stock was falling Tuesday, putting the artificial-intelligence chip maker’s recent winning streak in jeopardy.

Shares of Nvidia were down 2.6% in early afternoon trading Tuesday, while the S&P 500 was off 0.1%.

Other chip stocks were also lower. Advanced Micro Devices had declined 3.9% and Broadcom had slipped 3.8%.

It wasn’t immediately clear what was dragging down the shares, although the broader market was sliding as investors considered trade tariff uncertainty and the path of the Trump administration’s tax and spending megabill making its way through the Congress, which included the Senate removing a passage limiting state regulation of AI. The bill passed the Senate Tuesday, with Vice President JD Vance providing a tiebreaking vote. The new version of legislation now goes back to the House for its signoff, where it faces more uncertainty.

There was also another clash between President Donald Trump and Tesla CEO Elon Musk over the bill.

Profit taking may be another reason. Nvidia was among the biggest gainers since the early April lows, rallying by more than 70% over the last few months.

Whatever the reason, the selloff could put an end to Nvidia’s stellar recent run. The stock has climbed for six days in a row, leading the chip maker to reclaim its title as the world’s most valuable company and putting it on the brink of a $4 trillion market capitalization.

Write to George Glover at george.glover@dowjones.com and Adam Clark at adam.clark@barrons.com