Nvidia selloff deepens, adding to AI jitters
NVDA•Nvidia fell 6.5% as technology shares slid, with the Nasdaq down 1% and inflation data fueling expectations of another Federal Reserve rate hike next month. Nvidia was on track to lose more than $470 billion in market value over two sessions.
1. AI shares slide
Technology shares fell on Tuesday as investors weighed a hot US inflation report, which increased expectations that the Federal Reserve will raise rates again next month, and concerns about Nvidia. The Nasdaq Composite was down 1% in the afternoon; over the past month, it had fallen or risen by at least 1% on 14 days.
2. Nvidia concerns mount
Nvidia dropped 6.5% and was on track to shed more than $470 billion in market value over two sessions. The article cited its hiring of lawyers for an internal investigation tied to CEO Jensen Huang and complications in developing an Ohio data center. Investors were also watching for Nvidia’s earnings report, due after the close a week later.
3. Other AI stocks fall
Dell Technologies fell 4.8% on Tuesday, while Sandisk declined 4.5%. AI infrastructure firms Iren, Nebius and CoreWeave dropped 10%, 7% and 3%, respectively; all three had fallen at least 40% since the Nasdaq’s October 6 high. CoreWeave was due to report earnings after Tuesday’s close.
