Nvidia stock drops below $200 as Nasdaq falls about 5%

What happened. On Thursday, November 5, a sell-off in chipmakers hit the whole US market. Yahoo Finance reports that intraday the Nasdaq Composite was down about 5%, the S&P 500 about 3.3% and the Dow 2.2%, or more than 1,200 points. The VIX volatility index jumped more than 65%, its biggest one-day jump in over two years. Wednesday's post-election rally, when the Dow gained about 3%, was wiped out.

What about Nvidia. Yahoo Finance reports Nvidia was down more than 9% in the morning. It lost nearly $450 billion in hours and was worth about $4.4 trillion. The record close was on October 6, and the stock is down nearly 25% from it and below its 200-day moving average. It is on track for a fifth straight losing week. Barron's says the stock is at levels it has not seen in three months.

Other chipmakers. AMD, Micron and Arm posted double-digit losses, and Broadcom and Taiwan Semiconductor fell near 10%. Yahoo Finance estimates the chip selling erased roughly $2 trillion in market value. The SOX index, by the same account, is more than a third below its June record.

Causes, according to the sources. Yahoo Finance points to the election result: Democrats won both chambers of Congress, and candidates in both parties campaigned against AI data centers, which run on Nvidia's chips. This fall the Senate came close to passing a bill that would make data centers pay more of their power costs. Stifel analyst Brian Gardner told Reuters there will be congressional hearings.

A separate Micron story. Bloomberg reported on November 5 that Micron has effectively halted construction of its Fab 11E plant in Taiwan because of a labor dispute. The source does not say this caused the market drop, and the existing plants are running normally.

Confirmed facts

• On November 5, 2026, the Nasdaq Composite was down about 5% intraday, the S&P 500 about 3.3% and the Dow 2.2%.^[1]
• The PHLX Semiconductor index (SOX) was down 11%, and the VIX rose more than 65%.^[1]
• Nvidia was down more than 9% in the morning and worth about $4.4 trillion, having lost nearly $450 billion in hours.^[2]
• The Yahoo Finance page shows Nvidia at $182.04, down 9.04%.^[2]
• Since its October 6 record close, Nvidia has lost nearly $1.4 trillion in market value and is down nearly 25%.^[2]
• Nvidia is on track for a fifth straight losing week and trades below its 200-day moving average.^[2]
• Barron's says Nvidia stock is at levels it has not seen in three months.^[3]
• Yahoo Finance cites the Democratic win in both chambers of Congress and candidates in both parties campaigning against AI data centers.^[1][2]
• AMD, Micron and Arm posted double-digit losses, and Broadcom and Taiwan Semiconductor fell near 10%.^[2]
• The chip selling erased roughly $2 trillion in market value.^[1]
• Bloomberg reported that Micron has effectively halted construction of its Fab 11E plant in Taiwan over a labor dispute, an investment planned at $3 billion to $4.5 billion.^[4]

Implications

• ConfirmedNvidia's drop is moving together with the whole market, not apart from it.
• Our readingIf data center politics gets tougher, pressure on AI companies may last. This is our reading of the sources.

Still unknown

• Where Nvidia and the indexes close the day
• What exactly Congress will do about data centers
• Whether Micron's halted Taiwan construction is linked to the sell-off

Who it affects

US, Asia. Readers who follow Nvidia and chip stocks or hold them through funds

Sources

1. Yahoo Finance: Nasdaq plunges 5% as chip stocks sell off, Dow and S&P 500 give back post-election rally gains November 5, 2026 · media
2. Yahoo Finance: Nvidia has lost nearly $1.4 trillion since its October record November 5, 2026 · media
3. Barron's: Nvidia Stock Is Back Down at $200. What History Suggests Is the Floor. November 5, 2026 · media
4. Investing.com Korea: Micron halts Taiwan HBM plant construction November 5, 2026 · media