Nvidia Stock Falls as AI Selloff Deepens and Report Says It May Back Another Customer's Data Center

Nvidia shares slid on Friday, Oct. 30, as a wave of selling swept through AI-linked stocks and a fresh report revived questions about how the chipmaker helps finance its own customers.

The stock fell as much as 5.3% during the session and was still down 5.2% at 2:11 p.m. ET, The Motley Fool reported. CNBC put Nvidia’s decline at about 4% in its afternoon market coverage, and the quote shown with The Motley Fool’s article listed NVDA at $204.64, down 4.22%. Figures varied with the time they were taken, so check a live quote for the official close.

Why NVDA stock dropped today

Two things hit the stock at once.

A report on another financing deal. Nvidia is reportedly in talks to provide billions of dollars in credit guarantees for an Nscale data center that will ultimately be used by Anthropic, according to Bloomberg, which cited a person familiar with the matter, as reported by The Motley Fool. Nvidia has not been quoted confirming the talks.

The report adds to a growing list of commitments. The Information reported earlier this week that Nvidia has data center-related commitments and guarantees of $165 billion, and a recent regulatory filing showed more than $63 billion in equity stakes in publicly traded companies, many of them customers directly or indirectly, The Motley Fool said. Including startups, that figure reaches $99 billion. Some investors worry about this “circular” pattern, where a supplier helps fund the buyers of its own chips.

A broad AI selloff. CNBC reported that almost all tech stocks were down Friday as investors rotated into non-AI names such as Coca-Cola, Walmart and Eli Lilly. Intel fell 25% on weak revenue guidance and Micron dropped 5.5%, CNBC said. Alphabet had already fallen more than 10% after its earnings report Wednesday showed a drop in core advertising revenue.

Nvidia and the bigger AI spending debate

Investors are increasingly asking whether the massive AI build-out will produce profits fast enough to justify it. CNBC noted that big tech earnings this week suggested hyperscalers are pulling back on capital expenditures, and that Anthropic’s public filing showed slower sales growth from the second to the third quarter.

The iShares Semiconductor ETF fell deeper into a bear market this week, down 29% from its recent high, CNBC reported. Options traders said they were seeing more demand for downside protection on tech stocks.

“You want to make sure that the reward is worth the risk,” JJ Kinahan of Cboe Global Markets told CNBC. “I think the reward will be [there], but it continues to be a lot of money up front.”

Nvidia stock price: what the numbers show

The Motley Fool also noted that Nvidia holds more than $99 billion in cash and marketable securities, and that the stock trades at less than 26 times earnings.

What’s next for Nvidia

Nvidia is scheduled to report fiscal third-quarter results after the market close on Nov. 17, according to The Motley Fool. That report is likely to be the next big test for the stock and for the AI trade more broadly.

This article is for informational purposes only and is not financial or investment advice.

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