Why Nvidia stock is down 8.6% on November 5 as AI chip rout deepens

Nvidia stock is down on Thursday, November 5, and the reason is the whole AI trade, not anything Nvidia said. As of 18:48 UTC on November 5, NVDA traded at $182.95, down 8.6% on the session and 10.6% over five sessions, according to our market data. Yahoo Finance's NVDA quote page showed $182.80 at 1:50 p.m. EST (18:50 UTC), against a previous close of $200.13 and a day's range of $181.55 to $196.25.

The selling follows the US midterm elections on November 3 and 4. Democrats won Congress, and investors are asking whether that slows the build-out of AI data centers, which are Nvidia's main customers. Nvidia's own newsroom and SEC filings show no new results or company news today that would explain the drop.

Why is Nvidia stock down today

Reuters, in a report carried by MarketScreener, gives three reasons AI and data-center stocks fell:

• Political risk. The Democratic win raised the chance of tougher congressional scrutiny of data-center projects, which already face public opposition.
• Construction delays. UBS analysts estimated that about 30% of the US data-center capacity expected to be added in 2028 could be at risk from construction pauses. The report does not name the analysts.
• Doubts about returns. Ted Parkhill, founder and CEO of Incline Investment Management, told Reuters: "The market's moving from the promise of AI to the price of AI."

Nvidia sells the chips that go into those data centers. If fewer centers get built, or they are built later, fewer chips are ordered. That is the fear in the price. Yahoo Finance's Scout summary also points to investors questioning the pace of US data-center construction and customers' data-center delays. A TIKR headline on Yahoo's page called it a "midterm data-center fears" rout.

How big the move is

The size of the drop depended on the hour. Reuters' early report had Nvidia, Intel and Broadcom down between 3.2% and 4.9%. By the afternoon, CNBC's live blog said Nvidia had fallen about 8%, matching Broadcom, as the Nasdaq Composite fell 5.3% and entered correction, more than 10% below its record from last month. The S&P 500 fell 3.9%, its worst day since April 2025.

A Yahoo Finance headline says Nvidia has lost nearly $1.4 trillion in market value since its October record. We could not read the article behind that headline, so treat the figure as Yahoo's.

Keith Lerner, chief investment officer at Truist Wealth, told CNBC the tech sell-off was spreading to the broader market. Tim Holland, chief investment officer at Orion, said investors were waiting to see how the midterms affect AI capital spending.

The drop is not unique to Nvidia. Qualcomm fell 9% after its smartphone-chip sales missed estimates, a separate story. Reuters noted that Amazon rose 1.9% and Alphabet 1.6%, because some investors think slower construction could make existing facilities more valuable. We covered the same day's moves in AMD, the Nasdaq 100 correction and CoreWeave.

What Nvidia last reported

Nvidia's latest results are for its second quarter of fiscal 2027, which ended July 26. In its August 26 release, filed with the SEC, it reported revenue of $96.2 billion, up 106% from a year earlier. Data Center revenue was $89.0 billion, up 117%. For the third quarter it guided to revenue of about $108.0 billion, plus or minus 2%, and said it assumed no Data Center compute revenue from China. Its 10-Q, for the period ending July 26, was filed the same day.

Nothing in those documents has changed since the election. What has changed is how much investors are willing to pay for the growth they describe.

What to watch next

Nvidia said on October 28 that it will hold its third-quarter results call on Tuesday, November 17, at 2 p.m. PT (5 p.m. ET). The quarter ended October 25. That call is the next time Nvidia can speak about customer orders and data-center timing, and it is where today's fears will meet company numbers.

This article reports prices and the reasons named by Reuters, CNBC and Yahoo Finance. It is not investment advice. Prices change by the minute: the figures above are the ones read at the times given.