Has the AI “Honeymoon” Ended? Why Some Investors Are Selling Nvidia and Buying Gold

For years, Nvidia was the symbol of the artificial intelligence boom — a nearly unstoppable growth story that powered markets and portfolios alike. Its GPUs became the backbone of large-scale AI computing, and institutional investors poured capital into anything connected to “AI chips.”

But recently, some key investors have been shifting strategy. They are selling Nvidia shares, reallocating capital, and even buying gold — traditionally the safest of safe-haven assets. That has led to a provocative question among analysts:
Is the AI honeymoon period over?

Nvidia’s Recent Stock Pressure and Risk Sentiment

On January 20, 2026, Nvidia stock fell by about 2.9%, marking a notable setback for Wall Street’s AI darling amid broader market concerns. Technology shares were under pressure, and investors moved toward safer assets like gold, which benefits when risk appetite wanes.

This downward pressure in Nvidia’s price action reflects a broader shift in sentiment among certain investor classes. Traditionally, Nvidia’s leadership in AI hardware — particularly for data centers and generative AI workloads — made it a “must-own” stock. But now, some investors are asking whether the current pace of enthusiasm has outpaced fundamental economic reality.

What Analysts Mean by the “AI Honeymoon”

When analysts talk about an “AI honeymoon,” they refer to the early phase of the AI surge when:

growth expectations were sky-high,

valuations were expanding rapidly,

investors assumed long-term demand was unstoppable.

This era coincided with a massive run-up in Nvidia’s valuation, which reached historic levels as AI spending soared. However, caution is emerging because sustaining exponential growth requires not just demand for AI chips but profitability and business models that justify valuation multiples.

In simple terms: the honeymoon is when everyone believes the story unquestioningly. The hard part begins when the market asks:

“Can this growth really continue on its own terms?”

Why Investors Are Buying Gold

Gold — often called a “safe haven” — tends to shine when markets become uncertain or when investors want protection from volatility. In recent weeks, gold prices have risen as investors rebalanced away from high-risk tech stocks toward assets perceived as more stable.

This shift doesn’t imply the AI era is ending. Instead, it suggests investors are diversifying risk:

some locking in gains from previous Nvidia upswings,

others seeking stability in precious metals,

all reassessing where capital is safest in an uncertain macroeconomic backdrop.

High Profile Nvidia Sales: Profit-Taking or Warning Sign?

The strategy of selling Nvidia shares isn’t isolated. Over the past year, several well-known hedge funds and prominent investors have taken profits or cautiously reduced exposure to Nvidia:

Hedge fund managers like Israel Englander and Paul Tudor Jones sold significant portions of Nvidia shares while increasing their gold ETF holdings, aiming to balance growth with risk control.

Other billionaires, including Philippe Laffont, have trimmed Nvidia positions and redeployed capital into other rapidly rising tech stocks like CoreWeave, which recently saw its IPO surge more than 160%.

These moves represent liquidity management and rotation strategies, not necessarily bearish bets on the entire AI theme. They reflect a nuanced view: Nvidia may remain an important AI play, but timing and valuation now matter more than before.

Does Selling Nvidia Stock Mean AI Is Over?

Not at all.

AI remains a transformative force in technology and industry. But the stock market is not just about long-term transformation — it’s about valuation, timing, momentum, and risk.

Some of the selling can be attributed to:

• AI Spending Isn’t Going Away — But Investors Are More Selective

portfolio diversification,

short-term macroeconomic pressures,

rising interest rates or trade tensions.

For instance, Deutsche Bank analysts have suggested that part of the caution around AI stocks is less about technology and more about sustainable revenue models — especially for companies making huge infrastructure bets.

AI Spending Isn’t Going Away — But Investors Are More Selective

AI investment is still strong and expanding. Analysts continue to highlight growth in areas like generative AI, cloud services, and data-center spending. Recent broker reports still list Nvidia as a top AI stock for 2026, underscoring confidence in its mid-to-long-term potential.

• At the same time
• investors are paying closer attention to fundamentals
• profitability
• market rotation:

Some are reducing exposure to single megacap bets like Nvidia.

Others are scaling into complementary AI infrastructure plays.

And still others are hedging with gold and other safe-haven assets while monitoring macro risks.

This is not surrender — it’s sophistication.

What This Means for Individual Investors

For readers considering exposure to AI stocks or related markets, the current environment suggests a few pragmatic principles:

Profit-Taking Is a Valid Strategy
Locking in gains in high-growth stocks can be wise, especially after significant appreciation. It doesn’t mean abandoning the theme — just managing risk.

Diversification Matters More Than Ever
Combining growth assets with safe-haven allocations like gold or defensive sectors can help weather volatility.

Valuation Discipline Is Crucial
High expectations must be matched with sustainable business models. Rapid AI growth doesn’t ensure continuous stock price expansion if earnings can’t keep pace.

Conclusion: The AI Phase Is Maturing, Not Ending

The narrative of a relentless AI rally — where Nvidia was the unquestioned poster child — is evolving.

Investors are no longer solely focused on double-digit forecasted growth. They are asking tougher questions about profitability, scalability, and market dynamics. That doesn’t signal the end of AI’s transformative journey — only that the “balcony honeymoon period” is giving way to the sober reality of long-term investing.

And that’s a natural, healthy stage in any major technological revolution.

AI isn’t over — it’s entering its first real test.