Nvidia NVDA shares fell sharply on Friday as a broad selloff in technology stocks intensified concerns over the cost of artificial intelligence infrastructure and the time required for companies to generate returns on their investments.
Disappointing results from Amazon and Intel weighed on semiconductor stocks, while fresh reports involving CEO Jensen Huang and regulatory scrutiny of the company’s acquisition plans added to the spotlight on the chipmaker.
Nvidia was down more than 4.8% trading around $203.40 at the time of writing.
The wider market was also under pressure, with the Nasdaq Composite falling nearly 2.5%, while the S&P 500 and Dow Jones Industrial Average also traded lower.
The Philadelphia Semiconductor Index dropped around 7% as losses spread across chipmakers.
Amazon and Intel results deepen AI concerns
Amazon’s third-quarter results added to investor unease over the scale of spending required to build AI infrastructure.
The company reported a trailing 12-month free cash flow outflow of $42.4 billion, compared with a positive $14.8 billion in the year-earlier period. It was largely driven by increased investment in property and equipment, primarily for AI.
Amazon maintained its capital expenditure outlook of approximately $220 billion for 2026, reinforcing concerns over how quickly its investments will translate into stronger cash generation.
Its shares also came under pressure following the results.
Intel’s weaker-than-expected fourth-quarter guidance further unsettled the chip sector.
Although the company beat third-quarter earnings estimates, it forecast revenue of $15 billion to $16 billion for the current quarter, below Wall Street’s expectation of around $17 billion. Its adjusted earnings forecast of 25 cents per share also missed the consensus estimate of approximately 43 cents.
Intel shares plunged nearly 29%, while AMD dropped around 10%, adding to the pressure on Nvidia and other semiconductor companies.
Alphabet’s results had already contributed to the technology selloff a day earlier.
The Google parent reported third-quarter free cash flow of negative $9.07 billion as capital expenditure on AI infrastructure climbed, while weaker-than-expected advertising revenue added to investor concerns.
Report raises questions over Jensen Huang’s contact
Separately, a New York Times report published Thursday said US intelligence agencies had concluded that Alice Huang, also known as Huang Le, an executive at Singapore-based data centre company Megaspeed, was allegedly acting as a Chinese intelligence asset and passing commercial information to Beijing.
The report said surveillance had revealed that she developed a close relationship with Nvidia CEO Jensen Huang.
Nvidia rejected suggestions that the interactions were unusual, saying meetings with customers were part of the CEO’s job.
The company also said regional cloud customers received ordinary business information, not sensitive trade secrets or information relevant to national security.
DOJ questions Nvidia’s Hugging Face deal
Nvidia is also facing questions from the US Department of Justice over its proposed $12.93 billion acquisition of open-source AI platform Hugging Face.
Reuters reported that the department has asked whether the deal could give Nvidia control over an important distribution channel for AI and provide leverage over competitors.
The inquiry forms part of a broader examination of Nvidia’s acquisitions, investments and sales practices.
The DOJ’s questions do not establish wrongdoing or mean that legal action will necessarily follow.
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