Nvidia shares drop 4.8% as AI costs and regulatory scrutiny weigh

Nvidia shares fell more than 4.8% on Friday to around $203.40, driven by a broad technology selloff and mounting concerns over AI infrastructure costs and returns on investment. Disappointing earnings from Amazon and Intel pressured semiconductor stocks, while a New York Times report raised questions about CEO Jensen Huang's contacts and the Justice Department scrutinized Nvidia's planned $12.93 billion Hugging Face acquisition. The Nasdaq Composite dropped nearly 2.5%, and the Philadelphia Semiconductor Index fell about 7%. Amazon reported negative free cash flow of $42.4 billion over the past year due to AI investments, and Intel's weak fourth-quarter guidance missed Wall Street expectations. Nvidia rejected suggestions of unusual interactions with Huang, and the DOJ inquiry does not automatically indicate wrongdoing.