Nvidia shares fell 6.5% to approximately $167.11 on November 10, extending the chipmaker’s decline for a second consecutive trading session. The latest sell-off pushed the company’s market capitalisation to around $4.08 trillion, down from approximately $5.79 trillion when its shares reached an all-time closing high on October 6. The decline represents an erosion of roughly $1.71 trillion in market value in just over a month.
The correction reflects several concerns facing the artificial intelligence (AI) industry, including questions about the sustainability of AI infrastructure spending, elevated technology stock valuations and uncertainty surrounding Nvidia CEO Jensen Huang following reports of a possible foreign intelligence operation targeting him. The sell-off also allowed Microsoft to overtake Nvidia as the world’s second-most valuable publicly traded company, behind Apple.
Nvidia Stock Falls 6.5% in Two Trading Sessions
Nvidia’s latest decline followed a 4.3% drop on Monday, November 9. The additional 6.5% fall on Tuesday brought the two-day decline to approximately 10.5% on a compounded basis.
According to Fortune India, the two sessions put Nvidia on track to lose more than $470 billion in market capitalisation.
The broader decline has been considerably larger. Nvidia shares reached an all-time closing high of $243.37 on October 6, when the company was valued at approximately $5.79 trillion.
By November 10, its market capitalisation had fallen to around $4.08 trillion.
| Nvidia market performance | Reported figure |
|---|---|
| Record closing share price | $243.37 |
| Record market capitalisation | $5.79 trillion |
| November 10 share price | Around $167.11 |
| November 10 market capitalisation | Around $4.08 trillion |
| Market value erased since peak | Approximately $1.71 trillion |
| Decline from record share price | Nearly 31% |
The fall of nearly 31% from the record closing price places Nvidia’s shares deep into correction territory. The scale of the market capitalisation decline also demonstrates how quickly valuations can change when investor expectations around a high-growth technology company shift.
Why Are Nvidia Shares Falling?
Nvidia’s decline is linked to several developments rather than a single event. Concerns about AI spending, technology valuations and uncertainty surrounding the company’s leadership have combined to put pressure on the stock.
1. Concerns about the AI investment cycle
Nvidia has been one of the biggest beneficiaries of the global AI infrastructure boom.
Technology companies and cloud service providers have committed enormous sums to data centres, advanced processors, networking equipment and computing infrastructure. Nvidia supplies graphics processing units (GPUs) that are widely used to train and run AI models.
However, investors are increasingly questioning whether the spending on AI infrastructure will generate sufficient financial returns.
Major technology companies are investing heavily in computing capacity, but the commercial benefits of these investments may take time to materialise. If revenue growth from AI services does not keep pace with infrastructure expenditure, investors could reassess the valuations of companies supplying the technology.
This concern extends beyond Nvidia to other businesses involved in AI infrastructure.
2. Questions surrounding CEO Jensen Huang
The latest decline also followed reports about an alleged foreign intelligence operation involving Nvidia CEO Jensen Huang.
Fortune India reported that questions about Huang’s alleged links to a Chinese intelligence operation added to investor concerns. Reports surrounding the matter have raised questions about potential leadership, corporate governance and reputational risks.
These allegations should be distinguished from established facts. The reporting concerns an investigation into whether Huang was targeted in a foreign intelligence effort; it does not establish that Nvidia’s corporate information or national security secrets were compromised.
The uncertainty nevertheless added another source of concern for investors already reassessing the company’s valuation.
3. Elevated technology stock valuations
Nvidia’s market capitalisation had reached approximately $5.79 trillion at its October record.
Such a valuation reflected exceptionally high expectations for future AI-related growth. When investors become less confident about the pace of growth or the returns from AI infrastructure investment, even companies with strong businesses can experience significant share-price corrections.
The latest decline therefore reflects a reassessment of expectations as well as concerns about the company’s immediate circumstances.
Nvidia Loses Second Place to Microsoft
The decline also changed the global market-capitalisation rankings.
Microsoft overtook Nvidia on November 10 to become the world’s second-most valuable publicly traded company, behind Apple. The crossover occurred as Nvidia shares fell sharply while Microsoft’s stock recorded a much smaller decline.
Microsoft shares slipped 0.4% to $543.25, while Nvidia fell more than 6%.
| Company | November 10 share price movement | Market position |
|---|---|---|
| Apple | — | World’s most valuable publicly traded company |
| Microsoft | Down 0.4% to $543.25 | Second |
| Nvidia | Down 6.5% to around $167.11 | Third |
The change marked the first time since June 2025 that Microsoft had moved ahead of Nvidia in market value.
The rankings can change with daily share-price movements, so the crossover should be understood as a market snapshot rather than a permanent shift in the companies’ positions.
US Inflation Adds Pressure on Technology Stocks
Nvidia’s decline occurred alongside weakness across the broader US stock market.
The Nasdaq Composite fell 0.7% to close at 25,065.87 on November 10. The S&P 500 declined 0.4% to 7,520.93, while the Dow Jones Industrial Average slipped 0.3% to 52,231.89.
Higher-than-expected US inflation figures contributed to the negative market sentiment.
The Consumer Price Index (CPI) rose 0.4% in October, compared with economists’ expectations of a 0.3% increase. Core inflation, which excludes food and energy prices, increased 0.3%, above the 0.2% forecast.
The data strengthened concerns that the Federal Reserve could consider another interest rate increase in December.
Higher interest rates can put pressure on growth stocks because investors may apply higher discount rates to expected future earnings. Technology companies whose valuations depend heavily on anticipated future growth can be particularly sensitive to changes in interest-rate expectations.
The pressure was visible across the technology and AI infrastructure sectors. Dell Technologies fell 4.8%, SanDisk declined 4.5%, while AI infrastructure companies Iren and Nebius dropped 10% and 7%, respectively.
What Nvidia’s Market Value Decline Means for the AI Industry
Nvidia’s correction is significant because the company occupies a central position in the global AI infrastructure market.
Its GPUs are widely used by cloud providers, technology companies, research organisations and businesses developing generative AI systems. Demand for these processors has helped drive Nvidia’s rapid revenue and market-capitalisation growth.
However, the stock’s decline highlights the difference between strong demand for AI technology and the price investors are willing to pay for exposure to that demand.
A company can continue growing its revenue while its shares fall if investors believe that future growth has already been reflected in its valuation.
The market is also assessing whether AI infrastructure spending can remain at its current pace. Cloud companies must eventually generate returns from the data centres and computing capacity they are building. If monetisation takes longer than expected, suppliers across the AI ecosystem could face pressure.
For Nvidia, upcoming financial results and management commentary will therefore be important in assessing whether demand remains strong enough to support its business outlook.
The Bigger Picture
Nvidia’s $1.7 trillion market-value decline illustrates the risks associated with extremely high expectations in the AI sector. The company remains a major supplier of AI computing technology, but investors are increasingly examining the financial returns from infrastructure spending, the sustainability of demand and the risks surrounding major technology businesses. The correction also shows that a company’s market leadership can change quickly when share prices move sharply.
The broader AI industry is entering a phase in which investors may place greater emphasis on measurable business returns rather than announcements of large infrastructure investments alone. Nvidia’s performance will remain closely linked to demand for advanced chips, data-centre expansion and the ability of customers to turn AI investments into revenue. Its next financial updates could provide important information about whether the recent market concerns are primarily valuation-driven or reflect changes in the underlying business outlook.
Looking Ahead
Investors will closely monitor Nvidia’s upcoming earnings announcement, scheduled for November 17, 2026, for information about revenue growth, data-centre demand, margins and the company’s outlook. Nvidia had previously projected third-quarter fiscal 2027 revenue of approximately $108 billion, plus or minus 2%. The results and management commentary could help clarify whether demand for AI computing remains strong despite concerns about infrastructure spending and market valuations.
The company will also need to address investor uncertainty surrounding the reports involving Jensen Huang, while continuing to demonstrate that its technology remains central to the AI infrastructure market. For shareholders, the key questions will include whether demand can support future growth expectations and whether the stock’s valuation has adjusted sufficiently to reflect the risks. The recent decline is substantial, but it does not by itself establish that Nvidia’s underlying business growth has ended.
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