Tech stocks took a beating today, with Nvidia leading the selloff. The chip giant's shares tumbled after a government official made it crystal clear: there won't be any federal rescue package for the AI sector.

The statement came during a period when AI companies have been burning through cash at unprecedented rates, raising questions about sustainability. While some industry players had been quietly hoping for policy support—similar to what other strategic sectors received—this administration just shut that door.

Nvidia, being the backbone of AI infrastructure, felt the immediate impact. Investors quickly reassessed valuations across the AI supply chain. The message was blunt: if you're betting on AI, don't count on taxpayer money to cushion the fall.

Market watchers are now wondering whether this signals a broader shift in how Washington views the AI boom. Is this the reality check the sector needed, or will it stifle innovation? Either way, the no-bailout stance has injected fresh uncertainty into an already volatile tech landscape.