Nvidia (NASDAQ:NVDA), the provider of AI accelerators, GPUs, and high-performance networking chips, closed at $181.60, down 9.26%. Investors were selling AI and chip names as election-related uncertainty and demand worries intensified, and they are watching the Nov. 17 quarterly update.
Trading volume reached 300.4 million shares, coming in about 157% above its three-month average of 116.7 million shares. Nvidia IPO’d in 1999 and has grown 442,644% since going public.
How the markets moved today
The S&P 500 (SNPINDEX:^GSPC) fell 4.36% to 7,354, and the Nasdaq Composite (NASDAQINDEX:^IXIC) dropped 5.52% to 24,315. Among makers of semiconductors and networking and compute platforms, Advanced Micro Devices closed at $404.40, down 17.26%, and Broadcom closed at $291.53, down 10.43%, underscoring the broad AI-chip sell-off.
What this means for investors
Today, Nvidia shares sank alongside other AI chipmakers as investors rotated away from the group; the move reflected skepticism about demand and policy uncertainty rather than company-specific news. While AMD and others continue to suggest that data center-related demand remains strong, the midterm election results have market watchers wondering if that could soon change.
Investors should remember, though, that buyers of Nvidia’s products span the country and the globe. The company has said it expects sales to jump another 70% in the next fiscal year, and it would be higher without supply constraints. Nvidia’s stock is now at its lowest level since April and is down 2.5% year to date. It looks to be a compelling buy around these levels.
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