Nvidia shares tumble amid AI spending worries, DOJ scrutiny of Hugging Face deal and CEO contact report
On October 30 Nvidia stock fell sharply as investors grew uneasy about the scale of AI infrastructure spending and the timing of its returns. The drop was amplified by a New York Times story linking CEO Jensen Huang to a suspected Chinese intelligence asset and by the U.S. Justice Department’s questions about Nvidia’s proposed $12.93 billion acquisition of Hugging Face. Amazon’s $42.4 billion free‑cash‑flow outflow and its $220 billion 2026 capex plan also weighed on sentiment.
Why it matters
The sell‑off lowers Nvidia’s market value and may increase financing costs, while the DOJ inquiry could delay or block the Hugging Face deal, affecting Nvidia’s AI strategy. Investors may also reassess exposure to other chipmakers that fell alongside Nvidia, such as Intel and AMD.
Key facts
- 1Nvidia shares fell about 3% on Friday, trading at $207.32 before the market opened. ibtimes.com.au
- 2Nvidia shares were down more than 4% around $203.40 later in the day. invezz.com
- 3Nvidia shares dropped 5.3% in regular trading. financefeeds.com
- 4Nvidia reported Q2 revenue of $96 billion, up 106% year‑over‑year. finance.yahoo.com
- 5Nvidia’s data‑center revenue rose 117% to $89 billion in the latest quarter. ibtimes.com.au
- 6Amazon posted a trailing‑12‑month free‑cash‑flow outflow of $42.4 billion and a Q3 capital‑spending total of $77.3 billion. ibtimes.com.au
Open questions
- Percentage drop of Nvidia shares varies across sources: 3%, >4%, 5.3%, and 5.2%.
Summary written by AlphAI AI Desk from 5 of 5 sources. Not investment advice. Figures are as stated by the linked sources.