Stock Market Today, Jan. 8: Nvidia Slides as AI Demand Forecasts Top $500 Billion

Nvidia (NASDAQ:NVDA), a GPU and AI solutions leader, closed Thursday's session at $185, down 2.17%. Nvidia IPO'd in 1999 and has grown an astounding 450,934% since going public. Trading volume reached 163.5 million shares, coming in nearly 12% below versus its three-month average of 185.9 million shares.

Thursday's move followed commentary on AI demand potentially topping $500 billion through 2026 and renewed focus on H200 access to China. Investors are also watching Nvidia's data center growth and AI chip demand next.

How the markets moved today

The S&P 500 (SNPINDEX:^GSPC) finished flat at 6,921, while the Nasdaq Composite (NASDAQINDEX:^IXIC) slipped 0.44% to 23,480. Among Semiconductors peers, Advanced Micro Devices (NASDAQ:AMD) fell 2.54% and Intel (NASDAQ:INTC) declined 3.57%, leaving leading chipmakers under pressure despite strong AI server and data center narratives.

What this means for investors

Nvidia has been the AI bellwether, and perhaps investors are looking to diversify in the space. Yet the runway for Nvidia's growth to continue still appears long. Nvidia's CFO, Colette Kress, said at an investor event that AI product demand from the company through 2026 could exceed $500 billion.

Earlier this week, CEO Jensen Huang announced the company's next-generation AI platform Vera was in full production at CES in Las Vegas, even as current demand for its Blackwell architecture remains strong.

Investors may be taking profits after the stock's strong run in 2025, but there looks to be more appreciation ahead with business prospects as strong as ever.

Howard Smith has positions in Intel and Nvidia and has the following options: short February 2026 $170 calls on Nvidia and short March 2026 $26 calls on Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, and Nvidia. The Motley Fool has a disclosure policy.