Nasdaq Falls 5.5% in Worst Day Since April 2025 as Chip Stocks Tumble, Nvidia Down 9%
CNBC reports Nvidia and Qualcomm each lost more than 9% as Wall Street weighed the midterm results, rate worries and a memory shortage; chips partly rebounded Friday.
Photo: Will Buckner / CC BY 2.0 via Wikimedia Commons
The Nasdaq fell 5.5% on Thursday, November 5, its steepest one-day drop since April 2025, as chip and AI-infrastructure shares sold off sharply, according to CNBC.
The moves
Nvidia and Qualcomm each fell more than 9%, with Nvidia shedding almost $450 billion in market value, CNBC reported. AMD, Micron and Applied Materials each lost double-digit percentages. Alphabet, Amazon, Microsoft and Meta fell between 2% and 4%, while Tesla and SpaceX each dropped more than 9%. The Philadelphia semiconductor index fell about 12%, according to a CNBC summary relayed by AI News Weekly.
Market-data site StockTitan, citing CNBC, put the S&P 500's decline at 4.4% and said Micron fell 17.46%, AMD 17.26%, Marvell 16.43%, Arm 13.08%, Broadcom 10.43% and Intel 10.33%.
What investors pointed to
CNBC cited several factors:
- Midterm results that raised concern the AI build-out could slow. Per Ballotpedia, 41 local ballot measures in 10 states would have restricted data center construction; voters sided against data centers in every case but one, in Harwood, North Dakota.
- Rising interest rates and heavy capital needs, with Democratic wins in Congress feeding worries about debt outrunning revenue.
- A global memory shortage that is lifting prices and tightening supply, which weighs on Qualcomm, Intel and AMD.
- Qualcomm's disappointing forecast for the current quarter. CEO Cristiano Amon said: "We don't have a demand issue; it's a supply issue."
Meta President Dina Powell McCormick said building data centers is "going to be harder" after the elections, CNBC reported.
Friday rebound
On Friday, November 6, StockTitan reported, the Nasdaq Composite rose 1.09% and the S&P 500 rose 0.31%, while the Dow fell 0.46%. Nvidia closed up 2.78% and Qualcomm up 5.52%. An October jobs report showing 165,000 added jobs against 59,000 expected pushed Treasury yields higher. For the week, the S&P 500 lost 2.7% and the Nasdaq 3.4%.
Jefferies strategist Jane Gibbons told Reuters the selloff was "reactionary, not a fundamental reset," according to StockTitan.
Context
The drop followed a rally the previous day. Nvidia is expected to report earnings later this month, though the company had not confirmed a date in the sources reviewed. This article is a news summary and not investment advice.
