Nvidia shares fell 4.34% to $166.19 in after-hours trading on Friday while rival semiconductor companies Advanced Micro Devices (AMD) and Broadcom recorded gains.
AMD shares rose 5.86% to $585.30, while Broadcom advanced 5.54% to $364.36.
The contrasting movements followed a volatile regular trading session for Nvidia, during which its stock reportedly declined as much as 14% before recovering part of its losses.
CNBC reported that Nvidia managed to close the session with a market capitalisation exceeding $4 trillion.
The divergence between Nvidia and its semiconductor rivals extended beyond Friday's trading session.
According to CNBC, Nvidia shares declined approximately 11% during the week, while AMD gained 30% and Broadcom advanced 24%.
Taiwan Semiconductor Manufacturing Company (TSMC), which produces advanced processors for Nvidia, also recorded an 11% weekly gain.
The differing performances highlight a reported shift in investor preferences within the semiconductor industry.
While Nvidia faced selling pressure, competing chip designers attracted buying interest.
The market movements also reflected differing investor assessments of companies operating across the artificial intelligence (AI) supply chain.
TSMC's relatively strong performance was attributed to its position as a contract manufacturer serving semiconductor designers.
According to CNBC, the company's business model allows it to benefit from demand for advanced chips even when market share shifts between competing designers.
The report also suggested that some investors were moving away from AI stocks perceived as carrying greater risk.
Against this backdrop, TSMC emerged as a comparatively defensive investment option for those maintaining exposure to artificial intelligence.
The developments come amid heightened investor attention to semiconductor valuations, competition and the broader outlook for AI-related companies.
