Nvidia Stock Drops More Than 9% as AI Chip Selloff Hits Wall Street

Nvidia stock was the centerpiece of Thursday’s AI-driven market rout. Shares fell more than 9% on Nov. 5, 2026 — about 9.2% by NBC News’ count — making Nvidia the biggest contributor to the Dow Jones Industrial Average’s roughly 1,833-point drop and accounting for more than $440 billion of the Magnificent Seven’s more than $1 trillion market-cap loss, according to CNBC and NBC News.

CNBC said Nvidia turned negative on the year, with a year-to-date decline of about 2.6%. NBC News added that the stock has fallen about 15% over the past three months and that Thursday was its largest one-day decline since April 2025.

This article is for general information only and is not investment advice.

Why is Nvidia stock going down?

Two forces collided. First, chip peers Qualcomm and Arm posted mixed earnings that rattled semiconductor investors overnight, NBC News reported. The Philadelphia semiconductor index sank 12.3%, its worst day since March 2020. Memory and AI infrastructure names were hit even harder: SanDisk about −22%, Micron and AMD about −17%.

Second, investors fretted that Democratic midterm victories could mean tighter rules on data-center construction — the buildout that has fueled demand for Nvidia GPUs. USA TODAY and NBC News said candidates who pledged to rein in data centers won races in large markets such as Texas, raising questions about the pace of AI infrastructure spending.

Nvidia remains the most important supplier to AI firms, NBC News noted, but questions about returns on the capital pouring into the sector have grown louder.

How it fit the broader market

The Nasdaq Composite fell about 5.5% into correction territory. The S&P 500 dropped about 4.4%. All 11 S&P 500 sectors finished negative, with information technology down 7.30%, CNBC reported. Established cloud names Alphabet, Meta, Amazon and Microsoft also fell, but less than the overall tech complex, NBC News said. Dow components Cisco and Caterpillar — major data-center suppliers — each dropped around 6%.

Context inside the Magnificent Seven

CNBC’s rundown of Thursday’s tape put Nvidia at the center of the mega-cap damage: more than $440 billion of the group’s more than $1 trillion combined market-cap loss. The CBOE Volatility Index jumped 11.57 points — its biggest point gain since April 4, 2025 — as traders scrambled for protection, CNBC said.

Memory and AI infrastructure names amplified the chip scare. Beyond SanDisk and Micron, Western Digital and Seagate also posted double-digit percentage declines, NBC News reported. Asian markets opened under pressure Friday as investors digested the U.S. session, with Taiwan’s TAIEX down about 9% and Japan’s Nikkei off as much as 6% in early trade, according to NBC News.

Analysts quoted in coverage framed the move less as a sudden bubble pop and more as a rapid “loss of air.” Ed Yardeni told NBC News he saw an AI bubble “losing some air very, very rapidly,” which he argued could reduce the odds of a more destructive burst later.

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Earlier coverage: Nvidia Stock Falls About 9% and Enters Bear Market Amid AI Chip Selloff (Nov 5)