Category: Technology News
Nvidia, the chipmaker at the centre of the artificial intelligence boom, has lost about 1.4 trillion dollars in market value in a month as investors sold AI and chip stocks. The shares then rebounded sharply on Friday, 6 November 2026, along with AMD and Intel.
The fall
- Thursday, 5 November: Nvidia fell 9.26 percent to 181.60 dollars, its lowest level in seven months. Trading volume reached 306.1 million shares, about 157 percent above its three-month average.
- One month: the stock has fallen about 24 percent since its record close of 239.24 dollars on 6 October. It is now trading below its 200-day moving average and is on course for a fifth consecutive losing week.
- Thursday’s wider sell-off: AMD tumbled 17.26 percent and Intel dropped 10.33 percent on Thursday. Taiwan Semiconductor, which manufactures Nvidia’s chips, fell close to 10 percent.
Why investors sold
No company-specific news caused the fall. Financial media tied the drop to worries about the AI boom after the US midterm elections, in which Democrats won both chambers of Congress. Candidates from both parties campaigned against the large data centres that run on Nvidia’s chips.
The immediate concerns are:
- Tighter rules and slower permits for building data centres.
- Power supply: data centres use huge amounts of electricity. The US Senate came close this autumn to passing legislation that would require data centres to shoulder more of the electricity costs they generate.
- Texas, a data-centre hotspot, is a flashpoint: Governor Greg Abbott ordered state regulators in September to halt new data-centre permits, and governor-elect Gina Hinojosa campaigned on a moratorium.
Nvidia itself warns in its quarterly disclosures that power shortages, financing constraints and regulatory hurdles to building data centres could delay customer deployments.
The Friday rebound
Chip stocks bounced back on Friday as investors searched for bargains. Nvidia gained more than 4 percent in pre-market trading and closed 2.78 percent higher at 186.64 dollars. AMD rose 11.04 percent, Intel rose 7.71 percent and Micron rose 5.12 percent. The Philadelphia Semiconductor Index rose about 4.2 percent.
What comes next: earnings on 17 November
Nvidia reports third-quarter fiscal 2027 results on Tuesday, 17 November 2026, at about 1:20 PM Pacific Time, followed by a conference call at 2:00 PM Pacific Time. Analysts expect revenue of about 109 billion dollars and adjusted earnings of 2.47 dollars a share.
- The consensus analyst price target is about 327 dollars, roughly 80 percent above Thursday’s close.
- Melius Research recently cut its price target to 315 dollars from 420 dollars, warning that technology giants may need to raise hundreds of billions of dollars through stock and bond sales to fund AI infrastructure.
- Analysts have raised their fiscal 2028 earnings estimates by 24 percent over the past 90 days, to 15.91 dollars a share.
- Management expects revenue to grow about 70 percent next fiscal year and says the forecast is capped by chip supply rather than a lack of buyers. Amazon has committed to deploying another two million Nvidia GPUs.
Reported, not confirmed
Two reports about Nvidia have not been confirmed by the company: TSMC has reportedly begun planning vertically stacked 3D DRAM production at Nvidia’s request, and about 600,000 Nvidia H200 chips are reportedly stored in Hong Kong awaiting shipment to mainland China while Beijing has not approved large-scale imports of the H200.
Sources: The Motley Fool, Invezz, BigGo Finance and MerlinTrader, 5–6 November 2026.
