Nvidia lost roughly a tenth of its market value on Thursday as the post-midterm chip selloff ran into a second session, with the damage spreading past the AI chip leader into the broad S&P 500 and crypto. As of Thursday’s close, November 5, 2026, Nvidia closed at $181.60, down 9.26%, on turnover about 157% above its three-month average.
Key Takeaways
- ▼ Nvidia closed at $181.60, down 9.26%, as the Philadelphia Semiconductor Index fell 9.2%, its worst day since June.
- ▼ Democrats won both chambers of Congress on Tuesday, stoking fears of tougher AI rules and slower US data-center building.
- ■ UBS strategists estimate about 30% of the data center capacity expected to come online in 2028 is now at risk.
- ▲ Nvidia traded at 17x forward earnings on Nov. 2, its lowest in five years, and reports on Nov. 17.
Why Thursday was a second day of selling
Per TIKR on Yahoo Finance, Nvidia stock fell 9% “today, the second day of a chip rout that started after Democrats won both chambers of Congress on Tuesday, stoking fears of tougher AI rules.” Volume confirmed real positioning: 300.4 million shares traded, about 157% above a three-month average of 116.7 million.
What the midterm result changed for data centers
The political channel is explicit. Bloomberg reported that “Democrats took control of the Senate and House of Representatives in Tuesday’s midterm elections, with many voters indicating their opposition to data centres,” and that “In Texas, governor-elect Gina Hinojosa has called for an immediate moratorium on data centre development.”
For Nvidia, the risk has moved onshore. TIKR notes that “NVIDIA’s guidance already leaves out China data-center sales, so the new risk is slower US building and tougher AI rules,” because “US-headquartered customers brought in 69.3% of NVIDIA’s revenue in the year ended January 2026.”
How far the damage spread beyond Nvidia
According to Bloomberg, “The Philadelphia Stock Exchange Semiconductor Index was down 9.2%, putting it on pace for its worst day since June.” It also reported that “Advanced Micro Devices Inc slumped 15%, Micron Technology Inc lost 13%, Broadcom Inc dropped 7.2% and Intel Corp dropped 9.2%.”
Per etf.com on Yahoo Finance, SOXX and SMH “each dropped around 12%, also their worst days since 2020,” and Nvidia’s “drop alone shaved almost 0.7 percentage points off the index.” The S&P 500 fell 4.36% to 7,354 and the Nasdaq Composite dropped 5.52% to 24,315, according to Motley Fool.
Why crypto sold off at the same time
Proactive reported that “Bitcoin has fallen back towards US$76,000 as a sharp sell-off in US technology stocks spilled into cryptocurrency markets and triggered more than US$1 billion in leveraged liquidations.”
What analysts say to watch next
TIKR argues the selling ran ahead of the numbers: “Yet NVIDIA traded at 17x forward earnings on Nov. 2,” its lowest in five years, and it calls the report due November 17 “the first real test.”
FAQ
How much did Nvidia stock fall on November 5?
Nvidia closed at $181.60, down 9.26%, according to Motley Fool. ETF-focused coverage put the decline at 9.3%, a rounding difference.
What triggered the chip selloff?
Per TIKR, “Democrats won both chambers of Congress on Tuesday, stoking fears of tougher AI rules.” Bloomberg adds that “In Texas, governor-elect Gina Hinojosa has called for an immediate moratorium on data centre development.”
Did the selloff hit more than chip stocks?
Yes. The S&P 500 fell 4.36% to 7,354 and the Nasdaq Composite dropped 5.52% to 24,315, according to Motley Fool. Nvidia next reports its October-quarter results on November 17, which TIKR frames as the first real test.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
