Nvidia (NASDAQ: NVDA) benefited enormously from the increased investment in chips for artificial intelligence (AI), but news out of China is causing investors to wonder if the stock's high valuation is worth it ahead of potential risks to the massive investment big tech companies have put into data center infrastructure.

Since the start of 2023, Nvidia 's (NASDAQ: NVDA) stock has gained an astronomical 906% as of the time of writing. It's also right around its all-time high right now, but these two facts may scare some investors off. The common thought is, "Nvidia has risen so much already; how can it increase more?"

A Chinese startup’s latest affordable artificial intelligence (AI) chatbot sent NVIDIA Corporation’s NVDA shares into a tailspin, erasing half a trillion in market capitalization. However, the widespread anxiety among NVIDIA investors is overblown.

Shares of Nvidia (NASDAQ: NVDA) were sinking Wednesday. The company's stock fell 6.2% as of 2:20 p.m. ET, but lost as much as 6.9% earlier in the day. The move comes as the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) lost 0.