Technology shares retreated again on Nov. 10, with broad selling in AI-linked names as investors absorbed a hotter-than-expected US inflation report and fresh company-specific developments that intensified uncertainty around the sector.
Investor concern over the Federal Reserve potentially raising interest rates again next month - a view strengthened by the inflation print - combined with troubles centered on Nvidia to drive the drop. Nvidia hired lawyers to conduct an internal inquiry related to its chief executive, while the development of an Ohio data center project became more complicated, adding to the negative sentiment.
The Nasdaq Composite was down about 1% on Tuesday afternoon. The index has shown notable choppiness over the past month, moving lower by 1% or more on eight separate days and rising by 1% or more on six days in that span.
Even as selling accelerated, many investors retained a favorable view of the long-term prospects for artificial intelligence-related investments while acknowledging that the market has been more volatile since October.
"There is concern about what happens at the top at Nvidia, and if he’s replaced, who’s he replaced with," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. He added that he sees recent selling in Nvidia and other major AI firms as potential buying opportunities. "But I don’t see Nvidia falling apart. I see a very strong company hit by something not of its own making."
The day's heaviest losses centered on stocks that had been prime beneficiaries of the AI rally earlier this year. Nvidia was among the biggest decliners, sliding about 6.5% on the day. Server maker Dell Technologies fell roughly 4.8% on Tuesday, though it remains up 161% for the year, according to LSEG data. Chip firm Sandisk declined about 4.5% on the day and is up 257% year to date.
Among smaller AI infrastructure providers, pressure intensified as investors fretted about funding prospects in a tighter market. Iren dropped about 10%, Nebius fell 7% and CoreWeave slid roughly 3%. All three of these firms have fallen by at least 40% since the Nasdaq recorded its most recent peak on Oct. 6. CoreWeave was scheduled to report earnings after the close on Tuesday.
Market participants said that much of the selling appeared to be driven by broad anxiety rather than a single proximate cause, despite multiple news items affecting the sector that day. British cloud services provider Nscale was reported to be considering a delay of a planned $35 billion stock market listing, which added to the negative headlines around cloud and AI infrastructure names.
Shares of GE Vernova slid more than 6% after Japanese investment firm SoftBank revised equipment procurement plans tied to its US data center projects. GE Vernova is among the companies involved in the development of SoftBank’s large gas-fired power plant and data center in Pike County, Ohio, according to analysts cited in coverage of the story.
For Nvidia specifically, ongoing concerns about the fallout from CEO Jensen Huang’s alleged affair with a Chinese businesswoman who has been accused of being a spy for Beijing weighed on sentiment. The company was on track to lose more than $470 billion in market value over the course of two trading sessions as those worries mounted.
Despite the immediate turmoil, many investors emphasized they were focused on earnings and the longer-term fundamental picture. "We can always ascribe a reason as to why things are more volatile. And they have been more volatile the last few weeks for sure, since October, let’s call it," said Jason Ware, chief investment officer at Albion Financial Group in Salt Lake City, Utah. "But at the end of the day, the path for stocks over the coming weeks and months is going to be really a story of earnings."
Following Tuesday’s inflation data, market attention is likely to shift to a string of upcoming events that could move technology stocks: Nvidia’s quarterly report, due after the close a week from Tuesday, and the planned IPO of Anthropic in the days following that earnings release. The progress of those events, investors said, will be watched closely regardless of short-term market swings.
"We’re probably gonna have record earnings again next year unless we see a recession or a massive pivoting on AI capex, and I don’t expect either one," Ware said, noting that his firm owns Nvidia. "And so I think that’s going to be the signal is the trajectory of earnings, the economy growing more than 2%. And the rest of this is sort of just short-term noise that will, like I said, get ironed out over time."
Market snapshot and notable movers on the day:
- Nvidia - down about 6.5% on Tuesday and facing an internal review tied to its CEO.
- Dell Technologies - off roughly 4.8% on the day but up about 161% for the year, per LSEG data.
- Sandisk - down about 4.5% on the session and up about 257% year to date.
- Smaller AI infrastructure names - Iren, Nebius and CoreWeave all under pressure, each down materially and all off at least 40% from the Oct. 6 Nasdaq high.
- GE Vernova - slid more than 6% after changes to SoftBank’s equipment procurement plans tied to US data center projects.
Investors face a mix of macro and idiosyncratic risks as they weigh exposure to AI-related companies and the broader technology sector. For now, the market is parsing near-term headlines while also positioning for earnings results and the potential effects of sustained higher interest rates.