Nvidia’s historic rally has suddenly turned into one of Wall Street’s biggest wipeouts of the year. The AI chipmaker’s stock, ticker $NVDA, has fallen more than 16% since Monday, erasing a staggering $800 billion in market value in just four trading sessions. Shares closed around $181.62, down 3.43% on the day after touching an intraday low of $179.05 and a high of $189.46. The collapse marks Nvidia’s steepest weekly decline in over a year, and it’s shaking the foundations of the entire AI-driven tech rally that dominated 2025.
Nvidia’s market capitalization has plummeted from nearly $5 trillion earlier this week to about $4.47 trillion as of November 7, 2025, marking a staggering loss of approximately $530 billion in just days. Analysts say this latest selloff reflects both valuation fatigue and fears that the AI bubble might be cooling. “The stock had become priced for perfection,” said Michael Kraus, senior strategist at RBC Capital. “When expectations are that high, even a small concern becomes a major sell trigger.” That concern is growing fast as traders question whether Nvidia’s massive lead in AI chip dominance can withstand tightening U.S. export restrictions to China, which accounts for nearly 20% of its data-center revenue.
The U.S. government’s stricter semiconductor export rules have hit Nvidia’s top-tier chips, including its H100 and upcoming Blackwell series, raising doubts about short-term growth. Reports of possible production delays and supply chain strains have also fueled investor anxiety. The company’s total market cap has now dropped from $3.05 trillion on Monday to about $2.25 trillion by Friday’s close, according to Bloomberg data. Over 143 million shares changed hands during Friday’s session, signaling heavy institutional repositioning across the tech sector. Despite the dramatic slide, Nvidia remains the third-most valuable company in the world, behind only Apple and Microsoft.
The pain isn’t isolated to Nvidia. The broader AI and semiconductor sector is also bleeding. Shares of AMD, Broadcom, and Super Micro Computer tumbled between 3% and 6%, reflecting a sharp decline in risk appetite for AI-linked equities. Analysts at Wedbush call this a “healthy reset” after a parabolic run, but warn that volatility could persist as markets digest months of overextended valuations. Rising Treasury yields and global uncertainty are compounding the pressure, forcing investors to rotate out of high-beta tech and back into safer assets.
Still, Wall Street’s long-term view on Nvidia remains cautiously optimistic. The company is expected to post data-center revenue exceeding $25 billion this quarter, driven by unrelenting AI infrastructure demand. But execution risks tied to next-generation chip rollouts and export headwinds have clearly rattled near-term confidence. For now, traders are recalibrating expectations, not abandoning the story. Nvidia’s plunge is a reminder that even the biggest winners in the AI revolution are not immune to market gravity. Whether this is a temporary correction or the start of a deeper recalibration, the world’s most-watched stock has everyone asking: Has the AI boom finally reached its breaking point?
Michael Kraus, senior strategist at RBC Capital, said, “Nvidia’s rise has been incredible, but expectations caught up. When perfection is priced in, the smallest cracks can trigger panic.”
Adding to that pressure, U.S. export restrictions on advanced semiconductors to China have raised serious revenue concerns. China represents nearly 20% of Nvidia’s data-center sales, making the region critical for growth. Washington’s tightening chip rules have restricted the sale of Nvidia’s most powerful AI processors, forcing the company to delay shipments and rework designs.
Nvidia’s market capitalization has fallen from nearly $5 trillion earlier this week to approximately $4.47 trillion as of November 7, 2025. This represents a loss of around $530 billion in market value in just a few days.
The decline mirrors some of the biggest market cap losses in U.S. corporate history, rivaling the 2022 tech correction that saw trillion-dollar companies lose value within weeks. Despite the pullback, Nvidia remains the third-most valuable company globally, behind Apple and Microsoft.
The correction isn’t isolated to Nvidia. Other AI chipmakers and hardware firms are also sliding. AMD, Broadcom, and Super Micro Computer dropped between 3% and 6%, signaling a broader cooling in investor enthusiasm for AI-linked stocks.
“Investors are pausing after an incredible run,” said Monica Lee, technology analyst at Wedbush Securities. “It’s a healthy reset, not a breakdown. Everyone’s watching how export policies evolve and when Nvidia’s next-gen chips hit the market.”
Market sentiment toward AI has shifted from euphoric to cautious. With rising Treasury yields, global uncertainty, and slower cloud infrastructure spending, traders are re-evaluating just how sustainable Nvidia’s exponential growth can be in the near term.
China historically accounting for about 12.5% of Nvidia’s total revenue and up to 20-25% of its data center revenue. Following China’s ban on advanced Nvidia AI chips like the H20, Nvidia projects a loss of $8 billion in quarterly revenue. The market share in China dropped from 95% to zero, forcing Nvidia to exclude Chinese revenue in its forecasts, significantly affecting total revenue but Nvidia’s strong global demand partially offsets this impact.
China’s tightened tech export policies and ongoing geopolitical tensions have created uncertainty for Nvidia’s future earnings. Investors are worried that limited access to one of the largest AI markets could slow growth momentum.
This issue is particularly significant because China represents a major portion of potential AI infrastructure sales. Any reduction in demand from the region could influence quarterly results and investor confidence.
In the current climate, Nvidia’s China exposure is a key risk factor that traders are closely watching. Even with strong AI demand elsewhere, the market is sensitive to global regulatory and trade developments.
Investors are increasingly cautious as rising interest rates make expensive stocks less attractive. High rates increase the discount applied to future earnings, meaning growth stocks like Nvidia are more vulnerable to selling pressure.
Weak economic data and reduced risk appetite are making traders reconsider tech-heavy portfolios. This is not unique to Nvidia; other AI and semiconductor stocks are facing similar challenges.
As a result, market sentiment is playing a big role in today’s decline. Even strong fundamentals may not prevent short-term volatility when macroeconomic conditions are uncertain.
Wall Street’s long-term outlook for Nvidia remains constructively bullish. Analysts expect the company’s upcoming earnings report to show data-center revenue above $25 billion, led by global AI demand and continued dominance in GPU technology.
However, there are concerns over execution risks tied to the rollout of its new Blackwell architecture chips, with reports hinting at possible production delays. Such speculation has fueled short-term volatility, even though fundamentals remain strong.
Market watchers say the next few weeks are critical. If China restrictions intensify or if Nvidia signals any slowdown in its AI chip pipeline, the correction could deepen. Yet many institutional investors see this pullback as a buying opportunity to re-enter at lower valuations before the next leg of AI infrastructure expansion.
Profit-taking has been heavy since the stock peaked recently, and sentiment appears cautious. Momentum can reverse quickly when high-growth names show weakness, and Nvidia’s visibility makes it especially sensitive to swings in investor mood.
Watching technical indicators such as support levels and trading volumes can help investors gauge when a potential rebound might occur. It also provides insight into how the market is positioning itself around Nvidia and AI stocks in general.
This technical shift reflects a broader theme: high-profile stocks with rapid gains often experience sharper pullbacks when sentiment changes, even if fundamentals remain solid.
There is also a growing rotation away from the most hyped AI stocks. While Nvidia remains a key player, traders are increasingly weighing risks versus reward. This kind of rotation can lead to temporary declines, even for industry leaders.
Despite the pullback, Nvidia’s long-term prospects remain promising. AI and semiconductor adoption are expanding rapidly, and the company continues to innovate. Yet, short-term volatility highlights the need for caution in a market where hype and reality are constantly being tested.
Investors are closely monitoring upcoming earnings, product launches, and global demand trends. These factors will determine whether today’s decline is just a temporary setback or the start of a larger trend.
Nvidia’s market capitalization has plummeted from nearly $5 trillion earlier this week to about $4.47 trillion as of November 7, 2025, marking a staggering loss of approximately $530 billion in just days. Analysts say this latest selloff reflects both valuation fatigue and fears that the AI bubble might be cooling. “The stock had become priced for perfection,” said Michael Kraus, senior strategist at RBC Capital. “When expectations are that high, even a small concern becomes a major sell trigger.” That concern is growing fast as traders question whether Nvidia’s massive lead in AI chip dominance can withstand tightening U.S. export restrictions to China, which accounts for nearly 20% of its data-center revenue.
The U.S. government’s stricter semiconductor export rules have hit Nvidia’s top-tier chips, including its H100 and upcoming Blackwell series, raising doubts about short-term growth. Reports of possible production delays and supply chain strains have also fueled investor anxiety. The company’s total market cap has now dropped from $3.05 trillion on Monday to about $2.25 trillion by Friday’s close, according to Bloomberg data. Over 143 million shares changed hands during Friday’s session, signaling heavy institutional repositioning across the tech sector. Despite the dramatic slide, Nvidia remains the third-most valuable company in the world, behind only Apple and Microsoft.
The pain isn’t isolated to Nvidia. The broader AI and semiconductor sector is also bleeding. Shares of AMD, Broadcom, and Super Micro Computer tumbled between 3% and 6%, reflecting a sharp decline in risk appetite for AI-linked equities. Analysts at Wedbush call this a “healthy reset” after a parabolic run, but warn that volatility could persist as markets digest months of overextended valuations. Rising Treasury yields and global uncertainty are compounding the pressure, forcing investors to rotate out of high-beta tech and back into safer assets.
Still, Wall Street’s long-term view on Nvidia remains cautiously optimistic. The company is expected to post data-center revenue exceeding $25 billion this quarter, driven by unrelenting AI infrastructure demand. But execution risks tied to next-generation chip rollouts and export headwinds have clearly rattled near-term confidence. For now, traders are recalibrating expectations, not abandoning the story. Nvidia’s plunge is a reminder that even the biggest winners in the AI revolution are not immune to market gravity. Whether this is a temporary correction or the start of a deeper recalibration, the world’s most-watched stock has everyone asking: Has the AI boom finally reached its breaking point?
Why is Nvidia stock falling now
Nvidia’s slide is driven by valuation pressure and profit-taking. After soaring past a $3 trillion valuation, the stock’s momentum finally slowed. Analysts say the market has reached a “priced-for-perfection” phase where even minor worries spark heavy selling.Michael Kraus, senior strategist at RBC Capital, said, “Nvidia’s rise has been incredible, but expectations caught up. When perfection is priced in, the smallest cracks can trigger panic.”
Adding to that pressure, U.S. export restrictions on advanced semiconductors to China have raised serious revenue concerns. China represents nearly 20% of Nvidia’s data-center sales, making the region critical for growth. Washington’s tightening chip rules have restricted the sale of Nvidia’s most powerful AI processors, forcing the company to delay shipments and rework designs.
Nvidia’s market capitalization has fallen from nearly $5 trillion earlier this week to approximately $4.47 trillion as of November 7, 2025. This represents a loss of around $530 billion in market value in just a few days.
The decline mirrors some of the biggest market cap losses in U.S. corporate history, rivaling the 2022 tech correction that saw trillion-dollar companies lose value within weeks. Despite the pullback, Nvidia remains the third-most valuable company globally, behind Apple and Microsoft.
The correction isn’t isolated to Nvidia. Other AI chipmakers and hardware firms are also sliding. AMD, Broadcom, and Super Micro Computer dropped between 3% and 6%, signaling a broader cooling in investor enthusiasm for AI-linked stocks.
“Investors are pausing after an incredible run,” said Monica Lee, technology analyst at Wedbush Securities. “It’s a healthy reset, not a breakdown. Everyone’s watching how export policies evolve and when Nvidia’s next-gen chips hit the market.”
Market sentiment toward AI has shifted from euphoric to cautious. With rising Treasury yields, global uncertainty, and slower cloud infrastructure spending, traders are re-evaluating just how sustainable Nvidia’s exponential growth can be in the near term.
Could China restrictions affect Nvidia revenue
One of the biggest concerns hitting Nvidia today is China-related export restrictions. The company confirmed that its most advanced AI chips are not currently being sold to Chinese customers. Analysts estimate this could reduce revenue by billions each quarter.China historically accounting for about 12.5% of Nvidia’s total revenue and up to 20-25% of its data center revenue. Following China’s ban on advanced Nvidia AI chips like the H20, Nvidia projects a loss of $8 billion in quarterly revenue. The market share in China dropped from 95% to zero, forcing Nvidia to exclude Chinese revenue in its forecasts, significantly affecting total revenue but Nvidia’s strong global demand partially offsets this impact.
China’s tightened tech export policies and ongoing geopolitical tensions have created uncertainty for Nvidia’s future earnings. Investors are worried that limited access to one of the largest AI markets could slow growth momentum.
This issue is particularly significant because China represents a major portion of potential AI infrastructure sales. Any reduction in demand from the region could influence quarterly results and investor confidence.
In the current climate, Nvidia’s China exposure is a key risk factor that traders are closely watching. Even with strong AI demand elsewhere, the market is sensitive to global regulatory and trade developments.
How is the economy affecting Nvidia
Macro conditions are also weighing on Nvidia’s stock. Signs of slowing economic growth—such as layoffs, weaker consumer spending, and reduced tech demand—are affecting high-growth companies.Investors are increasingly cautious as rising interest rates make expensive stocks less attractive. High rates increase the discount applied to future earnings, meaning growth stocks like Nvidia are more vulnerable to selling pressure.
Weak economic data and reduced risk appetite are making traders reconsider tech-heavy portfolios. This is not unique to Nvidia; other AI and semiconductor stocks are facing similar challenges.
As a result, market sentiment is playing a big role in today’s decline. Even strong fundamentals may not prevent short-term volatility when macroeconomic conditions are uncertain.
What are the technical signals telling us
From a technical perspective, Nvidia’s stock has broken key support levels, including important moving averages. Analysts see this as a warning for short-term traders.Wall Street’s long-term outlook for Nvidia remains constructively bullish. Analysts expect the company’s upcoming earnings report to show data-center revenue above $25 billion, led by global AI demand and continued dominance in GPU technology.
However, there are concerns over execution risks tied to the rollout of its new Blackwell architecture chips, with reports hinting at possible production delays. Such speculation has fueled short-term volatility, even though fundamentals remain strong.
Market watchers say the next few weeks are critical. If China restrictions intensify or if Nvidia signals any slowdown in its AI chip pipeline, the correction could deepen. Yet many institutional investors see this pullback as a buying opportunity to re-enter at lower valuations before the next leg of AI infrastructure expansion.
Profit-taking has been heavy since the stock peaked recently, and sentiment appears cautious. Momentum can reverse quickly when high-growth names show weakness, and Nvidia’s visibility makes it especially sensitive to swings in investor mood.
Watching technical indicators such as support levels and trading volumes can help investors gauge when a potential rebound might occur. It also provides insight into how the market is positioning itself around Nvidia and AI stocks in general.
This technical shift reflects a broader theme: high-profile stocks with rapid gains often experience sharper pullbacks when sentiment changes, even if fundamentals remain solid.
Is the AI boom sustainable for Nvidia
Demand for AI infrastructure remains strong, but investors are asking tough questions about how quickly this demand turns into revenue and profits. The AI boom has created high expectations, and some market participants are now looking for evidence of sustainable growth.There is also a growing rotation away from the most hyped AI stocks. While Nvidia remains a key player, traders are increasingly weighing risks versus reward. This kind of rotation can lead to temporary declines, even for industry leaders.
Despite the pullback, Nvidia’s long-term prospects remain promising. AI and semiconductor adoption are expanding rapidly, and the company continues to innovate. Yet, short-term volatility highlights the need for caution in a market where hype and reality are constantly being tested.
Investors are closely monitoring upcoming earnings, product launches, and global demand trends. These factors will determine whether today’s decline is just a temporary setback or the start of a larger trend.
( Originally published on Nov 07, 2025 )
