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Nvidia ( NVDA ) stock briefly extended its decline on Friday as the AI chip giant's market cap losses from its record high in January reached $1 trillion.

A broader market sell-off coupled with fears of an overvaluation in the AI trade has sent the stock tumbling more than 23% over the past two months.

On Friday shares temporarily fell to hover near $107 each, down from their record close of $149.43 on Jan. 6, when the company's valuation sat just north of $3.66 trillion.

Nvidia's market cap stood at $2.6 trillion during Friday's session as selling on Wall Street intensified.

On Thursday renewed fears of an overextended AI trade surfaced after chipmaker Marvell Technology's ( MRVL ) revenue outlook failed to impress investors and semiconductor stocks fell.

"It’s been a rough year for NVDA so far. ... The stock (along with many of its AI-semi peers) has suffered, battered by a storm of growth fears, supply chain noise, and tariff and regulatory risks ," Bernstein analyst Stacy Rasgon wrote in a note to investors earlier this week. "Sentiment has clearly pivoted for now on the AI group."

Read more: How does Nvidia make money?

Tech stocks have led a broader market sell-off recently as investors weigh the impact of the Trump administration's tariff policy on the economy.

In late February Nvidia stock fell 8.5% in one session, sending the company's market cap below $3 trillion after the company's fourth quarter earnings topped Wall Street's expectations but its outlook for first quarter gross margin came in lower than estimates.

The stock also took a hit in late January after a new AI model released by Chinese firm DeepSeek called into question the mammoth spending from Big Tech on artificial intelligence infrastructure.

Nvidia fell 17% in a single day on the news, shaving $589 billion off the AI chipmaker's market cap — the largest single-day loss in stock market history.

@ines_ferre .