Nvidia stock fell 8.80% to $182.52 on Thursday as political shifts in Washington triggered selling across the artificial intelligence industry. The decline continued the pullback from the October peak and brought the company close to a fifth straight week of losses.Nvidia shares dropped significantly due to political changes in Washington.NVDA declined 8.80% as political headwinds impacted AI infrastructure valuations.
The claim
Nvidia's decline intensified during morning trading on Thursday, with shares briefly falling over 9% as weakness spread across the technology sector. The rapid intraday drop wiped out approximately $450 billion in corporate worth, bringing the market cap down to $4.4 trillion. Nvidia faced the risk of its poorest single-day showing since January 2025, a period marked by AI valuation turmoil driven by worries about DeepSeek.
The response
The total drop has erased nearly $1.4 trillion from the company's worth, highlighting the magnitude of the recent downturn. The stock has dropped beneath its 200-day moving average, a metric used to monitor long-term price trends.
The practical upshot
Investors offloaded shares throughout the semiconductor sector on Thursday, broadening the decline beyond Nvidia. Advanced Micro Devices, Micron Technology, and Arm Holdings posted double-digit drops, with Broadcom and Taiwan Semiconductor also experiencing sharp declines. The Philadelphia Semiconductor Index stood more than a third lower than its June peak, signaling widespread weakness among chip manufacturers.
Claims versus evidence
Bing News stated that Democratic control of Congress raises new questions about data center growth. Candidates from both major parties opposed the power consumption and community impacts of growing data center infrastructure during their campaigns. This political pressure adds uncertainty to the sector's future expansion plans.
Why it matters
- Product teams must monitor political sentiment regarding data center energy use.
- Semiconductor supplier stability may be affected by broader sector sell-offs.
- Valuation drops suggest reduced investor confidence in AI infrastructure growth.
- Market trends indicate potential funding constraints for large-scale AI projects.
Topics: Nvidia, semiconductors, AI infrastructure, stock market, politics
Updated
Numbers in context
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Your choice stays on this device. No public tally.Questions readers ask
How much did Nvidia stock fall on Thursday?
Nvidia stock fell 8.80% to $182.52 on Thursday.
What political change impacted AI stocks?
Democrats won control of both houses of Congress in Tuesday's midterm elections.
How much market value has Nvidia lost since October?
Nvidia has lost almost $1.4 trillion in market capitalization since its peak in October.
Connected stories
Reading receipt
- Nvidia shares declined 8.80% to $182.52 on Thursday.
- The company lost nearly $1.4 trillion in market value since October.
- Democratic congressional control raises data center expansion concerns.
Still open: How will new congressional leadership affect data center regulations?
Still open: Will the semiconductor sector recover from this sell-off?