Key Highlights

  • Nvidia (NASDAQ:NVDA) closed at USD 200.13 in the November 4, 2026 session, down 3.17%, on 149.03 million shares, about USD 29.8 billion of stock, second on the most-active screen by traded value.
  • Relative Volume was 1.46, and the decline came on a day when the Dow rose 3.03% and the semiconductor index fell 3.13%.
  • The screen showed a Market Value of about USD 4,823 billion, a trailing P/E of 25.30 and diluted EPS of USD 7.91, up 125.15% over twelve months.
  • The selloff deepened on November 5, when the stock fell 9.26% to USD 181.60, below its 2025 year-end close of USD 186.50, before rebounding about 6% on November 6.

Why Nvidia Traded So Heavily

The midterm elections changed the market mood toward artificial intelligence spending. Democrats won control of both chambers of Congress, and the winner of the Texas governor race pledged an immediate pause on new Data Center approvals in a state that holds roughly a quarter of planned US data center power capacity. Investors concluded that permits and power connections for new facilities could slow, which would affect Demand for the accelerators Nvidia sells into those buildings. Money moved into banks, consumer names and the cloud platforms that would spend less, while chip stocks were sold. Nvidia, the largest supplier in the AI chain, became the most direct way to express that view, which explains the heavy share volume. Relative volume of 1.46 shows that selling was broad rather than driven by a single holder, and about USD 29.8 billion of stock traded.

From Rotation to Rout

The pressure grew the next day. On November 5, the Nasdaq Composite fell 5.52% and the semiconductor index dropped about 12%, its worst session since March 2020. Nvidia lost 9.26% to USD 181.60, erasing its gain for 2026. The move reflected positioning more than any company announcement, since no new guidance or filing was released. On November 6, chip stocks recovered as buyers returned after the two-day slide, and Nvidia gained roughly 6%. The same morning, the October jobs report showed 165,000 new jobs against expectations near 65,000 and Unemployment of 4.1%, which kept the chance of a December rate increase high and capped the rebound in rate-sensitive growth shares. For long-term holders, the two-day fall reset the valuation rather than the business, since no order cancellations were announced.

Risks and What to Watch

The main risk is policy. Any spread of data center moratoriums beyond Texas, slower grid approvals or tighter oversight of large technology firms would weigh on orders. Export rules on sales to Chinese customers remain a second source of uncertainty. On the other side, Earnings power is strong, with trailing EPS up 125.15% and a P/E near 25, which is modest for the company's growth. Investors should watch statements from incoming state officials on already-approved projects, Capital spending plans from the largest cloud buyers and the company's next quarterly update. The divergence between cloud platforms, which rose on the election, and chip suppliers, which fell, is the clearest signal of how the market now reads AI spending. A narrowing of that gap would suggest the rotation is fading.

Where Things Stand

Nvidia was heavily traded on November 4 because it is the clearest proxy for AI spending, and the midterm results raised doubts about how fast new data centers will be built. The 3.17% decline turned into a 9.26% fall the next day before a partial rebound on November 6. Fundamentals have not changed, so the next moves will depend on policy signals and buyer spending plans. The rebound shows that dip buyers remain active in the name.