Nvidia has lost nearly $1.4 trillion in market value since reaching its record high in October, with its shares heading towards a fifth consecutive weekly decline as a broader sell-off in semiconductor stocks intensifies.

The chipmaker’s shares fell more than 9% at Thursday’s morning low, wiping out nearly $450 billion in market value within hours. The decline brought Nvidia’s valuation to approximately $4.4 trillion. If the stock had closed at those levels, it would have recorded its steepest single-day fall since the DeepSeek-driven sell-off in January 2025.

The latest decline has pushed Nvidia nearly 25% below its October 6 record closing price. The shares have also slipped below their 200-day moving average, a level closely watched by market participants to assess longer-term price trends.

Semiconductor Sell-Off Spreads Across the Industry

The pressure is not limited to Nvidia. Several major semiconductor companies have also recorded substantial losses as investors pull back from the sector.

Advanced Micro Devices (AMD), Micron Technology and Arm Holdings have posted steep double-digit declines. Broadcom and Taiwan Semiconductor Manufacturing Company have also fallen close to 10%.

The broader weakness is reflected in the PHLX Semiconductor Index, which has dropped more than a third from its June record.

The simultaneous decline across chipmakers highlights the extent of the pressure facing the semiconductor industry, particularly companies linked to the infrastructure supporting artificial intelligence development.

Political Opposition to AI Data Centres Adds Pressure

Political developments in Washington have emerged as a major concern for the sector.

Democrats have won both chambers of Congress, while candidates from both political parties have campaigned against AI data centres. These facilities require Nvidia’s advanced chips to power the computing infrastructure behind artificial intelligence services.

Concerns have also intensified over the electricity costs associated with operating large data centres.

Earlier this fall, the US Senate came close to advancing legislation that would have required data centres to bear a greater share of the electricity costs they generate. Although the bill did not advance, the debate has brought additional attention to the economic and political challenges surrounding the expansion of AI infrastructure.

For Nvidia, whose business is closely connected to demand for AI computing capacity, uncertainty around the future of data centre development has become an important factor for investors to consider.

Nvidia’s Historical Losing Streaks Offer a Mixed Picture

Nvidia’s current decline is also notable because extended losing streaks have historically been relatively uncommon for the company.

Since its initial public offering in 1999, Nvidia has experienced only 12 previous periods in which its shares fell for five or more consecutive weeks. Its longest such streak lasted seven weeks during the summer of 2008.

The historical record offers both encouraging and concerning signals for investors.

The most recent comparable losing streak ended in October 2022, shortly before the launch of ChatGPT in November that year. Nvidia subsequently benefited from the rapid expansion of the artificial intelligence industry, with its stock roughly quadrupling over the following 12 months.

However, the company’s earlier performance does not guarantee a similar recovery this time.

Across the 12 previous losing streaks, Nvidia shares were higher 13 weeks later in only five instances. The longer-term picture was somewhat stronger, with the stock trading higher a year after eight of those streaks.

The worst outcome followed a losing streak in 2002, when Nvidia shares declined by nearly two-thirds over the subsequent year.

The current sell-off therefore leaves investors weighing two very different historical possibilities: a recovery similar to the one that preceded the AI boom or a more prolonged decline as concerns surrounding the semiconductor industry and AI infrastructure continue to influence market sentiment.

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