Nvidia (NVDA) shares closed in the red on Wednesday as investors continued to retreat from AI stocks due to a mix of seasonal caution and valuation concerns. The selloff arrives only days ahead of Nvidia’s fiscal second-quarter earnings report scheduled for Aug.

Nvidia remains the dominant AI chipmaker in the market, but where is the stock headed for the rest of this year and into the next?

Shares of leading designer of graphics chips Nvidia (NASDAQ:NVDA) fell 3.5% in the afternoon session after investors took some profits off the table as markets awaited signals on future monetary policy from the Federal Reserve's Jackson Hole symposium later in the week.