Nvidia shares slide 3.6% on hot inflation and China market share loss

Nvidia (NVDA) shares fell 3.6% in afternoon trading on Wednesday, October 14, 2026, pressured by hotter-than-expected U.S. inflation data and rising concerns over its competitive position. The September CPI rose 0.6% month-over-month and 3.7% annually, both exceeding forecasts, which sent Treasury yields surging and boosted expectations for further Federal Reserve rate hikes. This disproportionately pressures high-valuation growth stocks like Nvidia. Separately, IDC data showed Nvidia's share of China's AI data center chip market fell to 34% in the first half of 2026, with shipments down 44% year-over-year amid Huawei's expansion. Microsoft also announced its third-generation custom AI chip, "Maia 300," planning to deploy over one million units starting in 2027, raising investor concerns about reduced reliance on Nvidia GPUs. CEO Jensen Huang said during a London tour that Nvidia would stop supplying chips to customers developing unsafe AI, drawing market attention as a potential customer-relationship risk. Broader market weakness amplified the decline, with the Nasdaq down 2.1% and S&P 500 down 1.3%. Nvidia had already shown technical weakness following a bearish weekly chart pattern, and its $235 billion share buyback authorization announced in late September failed to generate sustained buying demand. The stock fell to a low of $220.21, well below its 52-week high of $243.37.