Nvidia stock drops over 4% as AI spending worries hit tech shares

Nvidia shares fell over 4.8% on Friday to around $203.40 amid a broad technology selloff driven by concerns over AI infrastructure costs and the time needed for companies to see returns on their investments. Disappointing earnings reports from Amazon and Intel weighed on semiconductor stocks, with Amazon posting negative free cash flow of $42.4 billion over the past year due to AI investments and Intel issuing weaker-than-expected fourth-quarter guidance. The Philadelphia Semiconductor Index dropped about 7%, while the Nasdaq Composite fell nearly 2.5%. Additional pressure came from a New York Times report questioning CEO Jensen Huang's contacts with an alleged Chinese intelligence source, and a Justice Department inquiry into Nvidia's proposed $12.93 billion acquisition of Hugging Face.