Nvidia Shares Suffer Worst Day Since January 2025 -- AI Fears Trigger $450 Billion Rout

What happened

Nvidia shares fell more than 9% on Thursday, removing nearly $450 billion from the company’s market value. The Nasdaq Composite dropped 5.52% and entered correction territory as investors reconsidered AI infrastructure spending amid regulatory concerns and possible restrictions on data center projects in Texas.

Confirmed

Global impact / market context

If data center projects face restrictions or delays, demand for the chips and other equipment used to build AI computing capacity could arrive later or be reduced. That would put pressure on expected sales and returns across the AI supply chain, including Nvidia.

Analyst inference

The article links the selloff to both policy uncertainty and changing expectations about AI investment, rather than to a single company announcement. Texas matters because it represents about 27% of expected U.S. data center capacity, while UBS estimates 30% to 40% of planned additions through 2028 could face delays.

Analyst inference

What to watch

1. Watch whether Texas officials move from raising concerns to proposing or adopting specific limits on data center projects, which could affect construction timing and demand for computing equipment. Analyst inference
2. Track whether the estimated delays in planned U.S. data center capacity translate into revised construction schedules or spending plans, since those would indicate when infrastructure orders might shift. Analyst inference
3. Observe whether Nvidia’s shares and the Nasdaq continue to reflect concern about AI infrastructure spending and regulation, or whether later developments ease those concerns. Analyst inference

Evidence

• gurufocus.com