StocksHigh ImpactUpdated•Originally published 26 February 2026•Updated 27 February 2026•

1 min read

Nvidia Faces Sharpest Weekly Drop Since November as Competition and Growth Concerns Mount

Key Facts

1Nvidia's stock closed 5.5% lower.

2Approximately $259 billion in market capitalization was wiped out in a single session.

Nvidia (NVDA) shares plummeted 5.5% in a single session, erasing $259 billion in market value and putting the stock on track for its sharpest weekly decline since November. The sell-off is intensified by reports that major clients, including Meta and OpenAI, are actively seeking alternatives for their artificial intelligence infrastructure. While revenue growth is projected to accelerate to 77% in the April quarter, analysts are increasingly concerned about a potential slowdown after the current fiscal year. This shift in long-term outlook has overshadowed immediate gains, leading to a reassessment of the company's premium valuation. As a key driver of the Nasdaq 100, Nvidia's volatility reflects broader market anxiety regarding the sustainability of the AI-driven rally and the impact of increased competition from its primary partners.

8 months ago

Version History

Version 18 months ago

What changed: Updated to include fundamental reasons for the sell-off, including competition from Meta and OpenAI and long-term growth concerns despite strong immediate revenue projections.