Nvidia shares drop 8% as AI spending and financing risks weigh

Nvidia shares fell sharply on Thursday, dropping as much as 8.53% to around $183.06, as a broad tech selloff and concerns over future AI infrastructure spending weighed on semiconductor stocks. The decline threatened to erase roughly $381 billion in market value, potentially marking the company's second-largest single-day loss ever. The selloff followed Democratic gains in the US midterm elections, raising fears that stricter regulations on data center construction and higher infrastructure costs could follow. Nvidia's customers, including SpaceX and CoreWeave, also saw their shares fall, though some analysts noted companies could relocate projects to other states or abroad if local restrictions tighten. Nvidia has forecast 70% revenue growth for fiscal 2028, citing supply constraints rather than weak demand. The stock now trades at about 14 times forward earnings, below the S&P 500's 18.45 multiple. Its next earnings report on November 17 could serve as a catalyst, while investor George Noble warned of circular financing risks with customers.