Nvidia (NASDAQ: NVDA) closed at $181.60 on Thursday, November 5, down $18.53, as a selloff in chip stocks drove the Nasdaq Composite into correction territory. The Nvidia stock price later showed a partial recovery to $183.86 outside regular trading hours, still well below Wednesday’s $200.13 close.
Why Did Nvidia Stock Drop More Than 9%?
Investors sold AI infrastructure stocks after Democrats won both chambers of Congress in the US midterm elections, amid concern that greater scrutiny of data centre projects could slow construction. For Nvidia, the risk is that delays to new facilities could push back orders or deliveries of the chips that go into them. A slower buildout could affect when Nvidia books sales even if customers still plan to buy the hardware.
The election result did not itself change data centre rules, and Thursday’s selloff did not follow a new earnings report from Nvidia. What changed was the price investors were willing to pay for companies whose growth depends on AI infrastructure expanding quickly.
The scale of the selling made that clear. The Philadelphia Semiconductor Index fell about 12%, while the Nasdaq Composite dropped 5.52 % , leaving it more than 10% below its recent high. Nvidia lost more than $440 billion in market value because of its size, but the wider rout showed that investors were reassessing the sector as a whole.
Nvidia Stock Price Chart: Why $180 Is the First Test
The intraday chart shows that Nvidia did most of its falling early in Thursday’s session. The stock started near $196, already below its previous close, then fell into the low $180s. A rebound toward $187 failed to hold, and shares finished close to $180. Trading briefly dipped below that level outside regular hours before recovering to $183.86.
That makes $180 the nearest price to watch in the next regular session. A sustained move below it would show that the bounce had failed to attract enough buyers. On the upside, $185 to $187 is the first area Nvidia would need to regain. A return to $200 would take a rise of about 10% from Thursday’s close.
When Are Nvidia Earnings and What Should Investors Watch?
Nvidia is expected to report quarterly results on November 17. Investors will be looking at its data centre revenue and, more importantly, what management expects for the next quarter. The latest sales figures will show how much hardware Nvidia has already delivered. Its outlook can give investors a better sense of whether customers are changing the timing of new deployments.
That distinction matters after Thursday’s drop. Customers could still be committed to their AI spending plans even if individual projects take longer to open. A delay can move revenue from one quarter to another. A cut in orders would pose a bigger threat to Nvidia’s growth outlook.
Nvidia Stock Price Outlook: What Would Make the Bounce Last?
The move to $183.86 recovered only $2.26 of Thursday’s $18.53 loss. Holding $180 through the next regular session would be an early sign that selling is easing, particularly if other chip stocks also stabilise. The bigger test comes at earnings: if Nvidia’s outlook shows orders and deliveries are still on track, investors will have a reason to revisit Thursday’s selloff. If management signals that customers are pushing projects back, a move toward $200 will be harder to sustain.
Also on InvestingCube: Our GBP/USD forecast looks at why the pound fell despite the Bank of England’s rate hike and what the US jobs report could mean for sterling.
How much market value did Nvidia lose in one day?
Nvidia lost more than $440 billion in market value on November 5, according to CNBC, after its shares closed down 9.26% at $181.60.
Did Nvidia stock fall below $180?
It briefly traded below $180 outside regular market hours. The official Thursday close was $181.60.
How much does Nvidia stock need to rise to get back to $200?
From Thursday’s close of $181.60, Nvidia would need to gain about 10.1% to reach $200.
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