Nvidia is on track for a fifth straight losing week. After the midterm elections, traders fear Washington and the states could slow the AI build-out that powers the chip boom, and Thursday’s rout dragged AMD, Micron, Intel and Broadcom down with it.
Nvidia Stock Selloff: Key Facts
- Value lost: nearly $1.4 trillion since Nvidia’s record close on October 6, a drop of close to 25%.
- Thursday’s move: shares fell as much as 9% and traded down roughly 7% to 9% during the session, the steepest drop in more than a year.
- Market value: about $4.4 trillion, down from roughly $5.8 trillion at the peak.
- Trigger: Democrats won both chambers of Congress on November 3, and traders fear tougher AI rules and slower data center construction.
- Streak: five straight weekly declines, a run Nvidia has rarely seen since its 1999 IPO.
- Next test: Nvidia reports earnings on November 17.
Nvidia Stock Selloff: What Happened on Thursday
The Day in Numbers
The Nvidia stock selloff accelerated on Thursday. At the morning low the shares were down more than 9%, wiping out almost $450 billion of market value within hours and leaving the company worth about $4.4 trillion. By midday they were still down roughly 7%.
The damage was not limited to one stock. By midday the S&P 500 had lost about 3.9% and the Nasdaq about 5.1%. The market’s fear gauge, the VIX, jumped more than 57% to 26. Ten of the largest US technology companies lost about $1.74 trillion in value by late morning. Figures here reflect Thursday’s trading and may differ from final closing prices.
Chips Take the Brunt
AMD fell more than 13% in the morning, Micron roughly 15%, Intel about 8% and Broadcom about 6%. Memory and storage names such as Western Digital and Seagate were hit as hard. Chip stocks were also extending losses after results from Qualcomm and Arm.
Why Nvidia Stock Is Falling
Midterm Results Put AI Rules Back in Play
Democrats won both chambers of Congress in the November 3 midterms. The day after, Rep. Yassamin Ansari called for a pause on advanced AI development until adequate rules are in place. Traders now worry that tighter federal and state rules could slow data center construction, the main source of demand for AI chips.
State pressure is already building. A Colorado legislative staff report noted that states have passed a range of laws and executive orders on data centers, with worries about energy use, water and electricity costs. Reports have also pointed to proposed data center moratoriums in states including Texas, which matters because Texas is a major source of US data center capacity.
Worries About AI Spending
Politics landed on top of an existing nervousness. Investors have been asking whether planned spending on AI infrastructure will actually arrive next year. Bears also point to so-called circular financing, where Nvidia has invested in companies that then buy its products, so any slowdown in data center growth could hurt Nvidia’s investments as well as its sales. We covered how these giants got here in our look at the trillion-dollar chipmaking race.
China and the H200 Delay
Reports say China has delayed approving imports of Nvidia’s H200 chips, adding pressure. Nvidia’s own guidance already leaves out China data center compute revenue, so the new worry centers on domestic buildouts in the United States.
Nvidia’s Longest Losing Streak in Years
Nvidia closed at a record of about $239 on October 6. It has since slid nearly a quarter. Thursday’s drop put it on course for a fifth consecutive losing week, and its stock has strung together five or more down weeks only 12 times since its 1999 IPO. The longest ran seven weeks in the summer of 2008.
History gives a mixed signal. After those 12 earlier streaks, Nvidia shares were higher 13 weeks later only five times. The worst case came in 2002, when the stock lost nearly two-thirds of its value over the next year. The most recent streak ended in October 2022, a month before ChatGPT launched, and the stock roughly quadrupled over the following year.
Even a Record Quarter Could Not Save AMD
AMD shows how strong the policy fear is. It reported a record third quarter on November 3, with revenue of $13.38 billion, up 44.7% from a year earlier, and data center revenue up 97% to $8.55 billion. It guided to about $17 billion for the fourth quarter. CEO Lisa Su said she now expects revenue to grow more than 80% in 2027 and that demand is higher than supply. The stock still dropped more than 13%.
The Bull Case and the Bear Case
Bulls: Demand Still Outruns Supply
Optimists say the market is overreacting. On Nvidia’s August earnings call, chief financial officer Colette Kress said the company expects about 70% revenue growth in fiscal 2028, and called the outlook supply-constrained. Bulls argue that if projects are delayed in one state, sales can shift to other states or countries. By one estimate Nvidia now trades at a forward earnings multiple of about 13 to 14, below the broader market, for a company still expected to grow sharply.
Bears: Politics, Valuation and Circular Money
Bears question the timing and sustainability of AI spending and note how little cushion rich valuations leave if Washington slows the build-out. Intel is a special case. Its forecast on October 29 was soft, and the US government holds a significant stake that the company flags as a risk in its SEC filings.
What to Watch Next
The first date is November 17, when Nvidia reports earnings. One analyst said Nvidia must show revenue at or above its $108 billion guidance to prove demand survived the rotation out of AI. Before that, Friday brings the October jobs report, and oil has bounced back toward $90 a barrel, which can add to market swings. Beyond the calendar, watch for any concrete AI bill in Congress, further state action on data centers, and word from China on H200 approvals.
Analysis
Nvidia’s business has not changed in a week. Its stock has, because the risk changed from “can demand keep up” to “will the rules let it”. That is a harder risk to price, and it explains why even a record AMD report could not hold the line. The next two weeks will say whether this is a policy scare or the start of a longer reset. Wider markets are also under pressure, as in our report on the global bond sell-off, so chip stocks are not falling in isolation.
This article is for information only and is not investment advice.
Frequently Asked Questions
Why is Nvidia stock falling?
Several things are hitting at once: fears that a Democratic Congress and state governments will tighten AI rules, worries about AI infrastructure spending, concerns over circular financing, and a delay in China’s approval of H200 chips.
How much market value has Nvidia lost?
Nearly $1.4 trillion since its record close on October 6, a fall of close to 25%. The company is now worth about $4.4 trillion.
When does Nvidia report earnings?
Nvidia is scheduled to report on November 17, 2026.
Which other stocks fell?
AMD, Micron, Intel and Broadcom all fell sharply on Thursday, along with memory and storage names such as Western Digital and Seagate.
Could AI regulation really slow chip demand?
It could if rules delay data center construction, since data centers are the main buyers of AI chips. Bulls say projects can move elsewhere. Neither side can prove it yet.
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