Nvidia Drops to $182 After Democratic Control Raises Data-Center Concerns
Investor worry that tighter permitting rules and higher energy costs could slow data-center growth is weighing on demand for AI chips and pressuring the broader semiconductor market.
Overview
- Nvidia shares closed at $182.52 after a steep intraday sell-off that erased about $450 billion of value and contributed to roughly $1.4 trillion lost since the October high.
- The stock has fallen below its 200-day moving average and is nearing a fifth straight weekly loss, a rare multi-week decline for the company.
- Traders said renewed concern about the midterm result giving Democrats control of Congress prompted fears of tougher data-center permitting and proposals to shift energy costs to operators.
- Selling spread across chipmakers with double-digit drops reported at Advanced Micro Devices, Micron and Arm and sharp declines at Broadcom and TSMC, leaving the Philadelphia Semiconductor Index well under recent highs.
- Historically Nvidia has shown large swings after multweek drops, and slower data-center approvals or higher operating costs could reduce near-term hardware orders and pressure revenue across the AI-infrastructure supply chain.