Nvidia (NVDA) is on track for its fifth straight week of losses, and the decline since its October record has now erased nearly $1.4 trillion in market value.
Thursday did a lot of damage. At its morning low, Nvidia was down more than 9%, dropping its market value by nearly $450 billion in a matter of hours and leaving the company worth about $4.4 trillion. A close there would be the worst day for the stock since the DeepSeek sell-off in January 2025.
Nvidia has a lot of company.
AMD (AMD), Micron (MU) and Arm (ARM) are posting sharp double-digit losses, and Broadcom (AVGO) and Taiwan Semiconductor (TSM) are falling almost 10%. The PHLX Semiconductor Index (^SOX) is now more than a third below its June record.
182.75 -5:38 p.m. (-8.68%)
At 1:48:42 p.m. EST. Open market.
NVDA ^SOX
Nvidia itself is down nearly 25% from its record close on October 6 and trading below its 200-day moving average.
The trigger this time is Washington. Democrats won both houses of Congress, and candidates from both parties campaigned against AI data centers, the buildings that run Nvidia’s chips. This fall, the Senate nearly passed a bill that would have required data centers to pay more of the energy costs they generate.
Losing streaks this long don’t come around often for Nvidia. Since its IPO in 1999, the stock has suffered five or more weeks of decline, just 12 times before this one. The longest lasted seven weeks, in the summer of 2008.
The last one is the sequence the bulls will want to remember. It ended in October 2022, about a month before the launch of ChatGPT sparked the AI boom, and Nvidia’s stock roughly quadrupled over the next year.
This is the best case, not the base case. Nvidia was up 13 weeks later in just five of the previous 12 series, although it was up a year later in eight. The worst happened in 2002, when the stock lost nearly two-thirds of its value over the next year.
For the moment, it is Washington which constitutes the new concern which weighs on the title.
“There will be hearings in Congress,” Brian Gardner of Stifel told Reuters before the vote. “There will be investigations.”
In-house AI tools helped analyze interview transcripts, research, and write this article. Humans reviewed, edited and fact-checked the material before publication.
Jared Blikre is the global markets and data editor for Yahoo Finance. Follow him on @SPYJared or email him at jaredblikre@yahooinc.com.
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