Nvidia sets fresh sales record amid fears of an AI bubble and Trump’s trade wars

Despite surpassing Wall Street expectations for its AI chips, company shares drop 2.3% in after hours trading

Chipmaker Nvidia set a fresh sales record in the second quarter, surpassing Wall Street expectations for its artificial intelligence chips. But shares of the chip giant still dropped 2.3% in after hours trading, in a sign that investors' worries of an AI bubble and the repercussions of Donald Trump's trade wars are not quelled.

Nvidia's financial report was the first test of investor appetite since last week's mass AI-stock selloff, when several tech stocks saw shares tumble last week amid growing questions over whether AI-driven companies are being overvalued.