Nvidia shares slide 2.5% as AI selloff deepens on rate and inflation worries

Nvidia shares fell over 2.5% on Thursday, extending a five-day decline to roughly 8%, as a selloff in AI-related stocks intensified amid concerns that rising interest rates could curb AI investment and new data pointed to increased US inflationary pressures. The decline was driven by a hotter-than-expected US inflation report, which suggested price increases are broadening beyond energy and could keep rates higher for longer, raising borrowing costs for data center construction. Updates from TSMC and AI startup Anthropic also weighed on sentiment, with TSMC expressing caution about its 2027 outlook and Anthropic showing a sharp slowdown in sequential revenue growth, prompting investors to reassess the sustainability of AI spending and financing arrangements. The iShares Semiconductor ETF fell over 11% in the same five-day period, reflecting widespread weakness among chip stocks. Analysts noted that demand still exceeds TSMC's supply capacity, suggesting the selloff may be a repricing and financing adjustment rather than a collapse in demand, though investors are increasingly scrutinizing profitability, funding models, and the ability to generate returns from AI infrastructure investments.