Nvidia shares fall 8% on AI spending fears and financing risks

Nvidia shares plunged 8.53% to around $183.06 on Thursday, nearing a three-month low, amid a broad tech selloff and concerns over future AI infrastructure spending, threatening a record $381 billion market value loss. The decline followed Democratic wins in the US midterm elections, raising fears of stricter data center regulations and higher infrastructure costs. Nvidia's customers, including SpaceX and CoreWeave, also fell sharply, though some analysts note projects could shift to other states or abroad. Nvidia trades at roughly 14 times forward earnings, below the S&P 500's 18.45 multiple, and its next earnings report on November 17 may provide support. Investor George Noble warned of circular financing risks, comparing Nvidia's client guarantees to Cisco's dot-com era arrangements.