Nvidia's $1.2 Trillion Rout: Espionage, Midterms, and AI Doubts

Nvidia's stock has fallen over 27% since October 6, erasing more than $1.2 trillion in market value, ending its status as the world's most valuable company amid mounting doubts about AI profitability and political headwinds. Investors increasingly question whether massive AI investments, such as Anthropic's $900 billion commitment announced this month, can yield short-term returns. Recent financial reports from Meta and Google have amplified these concerns, impacting Nvidia as the primary supplier of AI training chips. The Democratic victory in November 3 midterm elections added pressure, as the party campaigned on slowing data center expansion, which would directly affect demand for Nvidia's chips that dominate these facilities.