Nvidia Falls 6.3% and Micron 3.6% as U.S. Inflation Rises 0.4% in October
Key Facts
Nvidia and Micron shares fell in trading on November 10, as data showed the U.S. consumer price index rose 0.4% month over month in October, according to the Bureau of Labor Statistics. Nvidia shares dropped 6.3%, while Micron shares fell 3.6%, according to an Associated Press report published the same day. The monthly inflation reading was below September’s 0.6% increase. The Bureau of Labor Statistics release does not compare the actual reading with market expectations. Chip stocks were in focus in a session that also saw the 10-year U.S. Treasury yield rise.
The shelter index rose 0.3% in October, accounting for more than 30% of the monthly increase in the overall index, according to the Bureau of Labor Statistics. The food index rose 0.5% during the month, while the energy index increased 0.7%. Energy prices had posted a larger 5.2% increase in September, making the monthly pace of gains in that component slower in October. The overall index rose 0.4%, after increasing 0.6% in the previous month. These components detail the sources of the monthly increase, while shelter remained the largest single contributor, according to the bureau’s data.
Nvidia shares were under pressure after its board announced an investigation into CEO Jensen Huang, the Associated Press report said. The report also pointed to broader concerns tied to the artificial intelligence sector, without attributing the stock’s decline to any single factor. The 6.3% drop in Nvidia shares coincided with a 3.6% decline in Micron in the same session. The 10-year Treasury yield rose to 5.01% from 4.88% late Monday, according to the report. The yield move places technology stocks’ performance in the broader context of developments in the bond market during the day.
In the previous session, the SOX semiconductor index gained 6.9% on November 9, its best performance since late July, according to an Axios report. The Nasdaq 100 rose 3.4%, its biggest daily jump since late March. Broadcom shares gained 8.8%, while AMD shares jumped 13.3%, also benefiting from Oppenheimer raising its rating to “Outperform.” Goldman Sachs analysts said in a Monday note that stocks were clearly in “oversold” territory and recommended buying Nvidia, Broadcom and AMD. Axios also quoted Morgan Stanley analysts as saying the market’s reaction to the midterm elections had been excessive, while JPMorgan analysts saw the technology stock selloff as creating specific investment opportunities.
Axios reported that expectations for capital spending by cloud computing giants appeared weak even before the developments involving Nvidia and the state elections. That raised questions about funding for artificial intelligence infrastructure, as sector stocks are affected by broader concerns about the investment outlook. Nvidia’s upcoming results are a near-term milestone for monitoring the company’s performance, covering the third quarter of its fiscal 2027, which ended on October 25. The company said it would discuss the results on a call on November 17 at 5 p.m. Eastern time. Nvidia had forecast in August revenue of $108 billion, plus or minus 2%, for the quarter, assuming no data center computing revenue from China.
In the second quarter of its fiscal 2027, Nvidia reported revenue of $96.2 billion, up 18% from the previous quarter and 106% from the same period a year earlier. Data center revenue totaled $89 billion for the quarter, according to the company’s results. That performance gives investors context ahead of the next results announcement, which will report the outcome for the quarter ended October 25. The next U.S. inflation data, for November, are scheduled for release on December 10, 2026, at 8:30 a.m. Eastern time. The release will follow the October report, which showed the monthly increase in the consumer price index slowing compared with September.