The Nasdaq Composite has dropped about 7% from its peak amid AI excitement, resulting in a market setback.

AI-related stocks like Arm Holdings, Nvidia, and Micron Technology are recovering after a recent sell-off.

Nvidia has purchased Run:ai, a company focusing on AI hardware infrastructure management, for an estimated $700 million.

Run:ai's technology enables parallel operation of AI models on various hardware, and it has secured substantial VC funding, raising $118 million pre-acquisition.

The acquisition of Run:ai bolsters Nvidia's DGX Cloud AI platform, enhancing its offerings to enterprise customers for AI model training.

This move is one of Nvidia's largest acquisitions following its purchase of Mellanox in 2019.

Analysts maintain a positive outlook on the AI sector's future, especially in cloud computing and server deployments, despite current market fluctuations.