Nvidia in Free Fall: Six Weeks of Declines, Yet Indices Still Post an Excellent Week
By Ilan Segal
November 15, 2026
By: Ilan Segal, Senior Technology Commentator
Trading on Wall Street closed lower on Friday, with the Nasdaq Composite shedding 0.91% to settle at 25,136.27 points, while the S&P 500 fell 0.4% to 7,561.67 points. The backdrop to the selloff was aggressive selling in Nvidia shares, which lost an additional 2% on Friday after plunging more than 4% in the previous trading session. Nevertheless, despite the daily pressure, the indices recorded their best week since August, with the Nasdaq adding 2.3% for the week, the S&P 500 climbing 2.5%, and the Dow Jones rising 2.1%. The storm was set off by the dramatic resignation announcement of Nvidia founder and CEO Jensen Huang, following reports of personal extramarital relationships, including a relationship with a woman who, according to American intelligence sources, is suspected of spying for China. The producer price data released that same morning showed a 0.3% increase in October, below the expected 0.4%, but in annual terms a 6.5% rise was recorded — the sharpest jump since November 2022.
From a technical standpoint, this is one of those moments when the market reprices not just idiosyncratic risk in a single company, but the entire valuation of the semiconductor and artificial intelligence sector. Nvidia stock recorded six consecutive weeks of declines — its longest losing streak since October 2012 — and the past week produced a weekly plunge of 12.8%, its worst performance since the week of Liberation Day in April 2025. For comparison, even in previous correction cycles in the tech market, including the sharp drop in early 2025 following the emergence of the DeepSeek model, we saw sharp corrections of 10 to 20 percent in Nvidia stock, after which the stock returned to its upward trajectory. This time the market is contending with a double shock: unprecedented institutional uncertainty at the world's largest company by market capitalization, alongside an annual inflation environment that continues to vex the Federal Reserve chairman and raises the probability of a December rate hike, already priced at about 90% according to CME's FedWatch tool.
The multi-sided picture reveals a deep disagreement between the bears and the bulls. The bears argue that the market is suffering from "cost fatigue" when it comes to spending on artificial intelligence infrastructure, and that SoftBank's aggressive sale of all its Nvidia holdings signals that we are approaching peak growth rates. Portfolio manager Thomas Martin of GlobAlt Investments warned that the process of finding a permanent CEO — with CFO Colette Kress serving as interim CEO — "will take a long time" and will increase uncertainty, particularly regarding financing arrangements and relationships with suppliers and customers. On the other hand, the bullish approach, represented by Gene Munster of Deepwater Asset Management, holds that the decline is a buying opportunity. Munster, who noted as early as February 2025 that "Nvidia is a buy on the dip," described the stock as "the world's largest company with the most attractive valuation relative to growth," and clarified that according to his forecast, another two to three years of a bull market in AI infrastructure remain. According to him, while the market focuses on immediate pressure, demand for AI solutions continues to outstrip supply, and any 6% increase in Wall Street revenue estimates still leaves about 10% more on the table through the end of 2026.
The strategic conclusion is that this is not a temporary trend change, but a structural shift in how the market prices AI giants. The 12.8% volatility in a single week in a stock worth trillions of dollars reflects a transition from a phase of "growth at any price" to a phase in which investors demand to see return on invested capital, stable leadership, and an orderly chain of command. Although Nvidia's annual growth stands at 59% in 2025, the 2026 forecast was revised upward to 45% — a figure that still reflects expansion far faster than the historical average for the technology sector. At the same time, diversification into market corners not directly tied to artificial intelligence has increased in recent weeks, indicating that investors are not abandoning the sector but rather reallocating risk. Historically, sharp correction cycles are always accompanied by doubts and skepticism, and these are precisely what is necessary to allow leading companies to surprise positively later on. The central question is not whether artificial intelligence will continue, but who will lead it and who will know how to price its operational advantage correctly. As long as demand for AI infrastructure outstrips supply, the main risk for investors is not the decline in price, but rather being positioned too short.
Disclosure note: This publication is based on real-time reports from financial news networks, including CNBC, Kiplinger, Investing.com, and Yahoo Finance; on data from the U.S. Bureau of Statistics regarding the Producer Price Index for October; on analyst reports from HSBC, Baird, and GlobAlt Investments; and on official publications from Deepwater Asset Management and Gene Munster's official website. Interest rate data and the probability of a December rate hike are based on the CME Exchange's FedWatch tool. Nothing herein constitutes a recommendation to buy or sell securities.
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