Nvidia To Report Quarterly Earnings
Nvidia Stock Plunges Nearly 8% in Steepest Drop Since April 2025 as AI Chip Rout Erases 1,000 Nasdaq Points Justin Sullivan/Getty Images

Shares of Nvidia Corp. tumbled nearly 8% on Thursday, leading a sweeping selloff in artificial intelligence and semiconductor stocks that knocked more than 1,000 points off the Nasdaq composite and sent Wall Street's fear gauge soaring.

Nvidia shares fell $15.30, or 7.64%, to $184.83 in Thursday trading, with more than 115 million shares changing hands. The drop erased hundreds of billions of dollars in market value, leaving the chipmaker valued at about $4.44 trillion.

The move marked Nvidia's largest intraday decline since April 2025.

Broad market rout

The selling spread well beyond Nvidia. The S&P 500 was down 2.4%, the Dow Jones Industrial Average lost more than 700 points and the Nasdaq fell more than 3.9%, while a semiconductor index slid about 8.7%.

Volatility surged. The VIX, Wall Street's so-called fear gauge, rose 40% to 23.28.

Results from other chip companies added to the pressure. Semiconductor stocks extended declines following results from Qualcomm and Arm Holdings.

A steady slide

Thursday's drop deepened a losing streak. Nvidia had closed at $200.13 on Nov. 4, down 3.17% from the prior day. Between Oct. 6 and Nov. 4, Nvidia stock fell 16.3% while the S&P 500 lost 1.6%.

The stock is now well below its peak. Its record close was $239.24 on Oct. 6.

What's driving the selloff

Analysts point to several overlapping concerns, with no company-specific news behind the drop.

The midterm election results have fueled fears about AI infrastructure. Democratic midterm wins, including the Texas governor's race, raised concerns that AI data center construction could slow, though Nvidia had no company news and no customer has been reported canceling an order.

China remains a sore spot. Reuters reported that about 600,000 H200 chips bound for Chinese buyers remain stranded in Hong Kong because of import licensing delays.

Broader doubts about AI returns persist. JPMorgan expects about $900 billion of AI spending worldwide in 2026, and investors want to know when that money pays back, according to Trefis.

Earnings ahead

All eyes now turn to Nvidia's quarterly report. Results arrive Tuesday, Nov. 17. 24/7 Wall St. said Nvidia must show revenue at or above its $108 billion guidance to prove demand survived the rotation away from AI spending.

Despite the slide, demand fundamentals remain strong. Trefis noted that management says demand is larger than Nvidia can supply, so the key question is what meeting that demand will cost.

The stock tends to swing more than the broader market. Its beta of 2.247 means it moves more sharply than the market overall.

Despite Thursday's losses, Nvidia shares remain up about 6% over the past year.