Nvidia Falls 6.3% in Nov. 10 Session as Inflation Pressures and Bond Yields Mount

Key Facts

Nvidia shares fell 6.3% in Tuesday's Nov. 10 session, weighing more than any other single stock on the S&P 500, according to the Associated Press. The losses came on a day when U.S. stocks declined after a report showed inflation rose more than economists expected in the previous month. The 10-year U.S. Treasury yield climbed to 5.01%, from 4.88% late Monday, in a move the agency said pressured stocks. Two factors therefore weighed on the market during the session: stronger-than-expected price data and rising yields, alongside ongoing concerns about AI stock valuations. Nvidia was the single largest contributor to pressure on the index, the agency said.

Losses spread to other companies tied to AI infrastructure and its supply chains. GE Vernova, which provides equipment that helps power AI data centers, fell 7% during the session. Micron Technology, which sells computer memory, declined 3.6%, while CoreWeave fell 2.6%, according to the Associated Press. AMD shares, by contrast, were little changed, showing that the decline did not affect all stocks linked to the sector to the same degree. The agency said concerns about elevated AI stock prices and the possibility of a bubble had preceded the latest selloff, with investors also worried about data center construction after the local elections.

Nvidia entered Tuesday's session under earlier pressure after its board announced an independent investigation into reports that its chief executive, Jensen Huang, was targeted in a foreign intelligence operation. The board said the investigation would examine relevant facts, according to the company's announcement as reported by the Associated Press. In Monday's Nov. 9 session, the stock fell 4.3%, wiping about $190 billion from its market value, according to a separate agency report. That provided recent context for Tuesday's decline, while the agency also linked the latest session's move to inflation data, higher bond yields and broader concerns about AI stocks. Pressure extended beyond Nvidia, with shares of other companies in the sector also falling that day.

Against the backdrop of the monetary policy debate, Federal Reserve Governor Christopher Waller said a stronger policy move could become necessary if the report showed a 0.3% increase in a core inflation measure compared with September; the Tuesday report met that threshold, according to the Associated Press. Waller had said personal consumption expenditures inflation rose 0.5% in September from a month earlier and 3.7% over the previous twelve months. The core index, which excludes food and energy, increased 0.3% in September and 3.1% year over year, according to Federal Reserve data. The figures come as stocks remain sensitive to bond yields: the rise to 5.01% in Tuesday's session renewed pressure on the market after the yield stood at 4.88% late Monday. The 10-year Treasury yield had topped 5.30% in early October amid concerns about inflation, higher interest rates and government debt, before falling and then rising again in the session covered by the report.

Markets are awaiting Nvidia's quarterly results, scheduled for release after the market close on Nov. 17, according to Reuters in a report carried by Investing.com. Brokerage sources cited in the report expect data center revenue to rise more than 12% quarter over quarter. The results date refocuses investors on the performance of the data center business at a time when chip, energy and cloud computing stocks fell during Tuesday's session. In an earlier assessment of the Nov. 5 AI stock selloff, a Jefferies analyst described the move as a "reaction" rather than a fundamental shift, while UBS said markets had become too negative about political and credit risks and AI spending. As for Super Micro, which EL7 reported closed at $28.6 on Nov. 9, the available price does not include the stock's move in the Nov. 10 session; the company warned in its annual report that export restrictions on its products could adversely affect its business, without establishing that as the cause of its stock move in the session covered by the report.