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Nvidia Shares Plunge Amid China Concerns and AI Spending Doubts
11 Nov
Summary
- Nvidia stock fell 4% on Friday, down over 7% in the past week
- Investors uneasy about Nvidia's China exposure and AI infrastructure costs
- OpenAI CEO clarifies no government guarantees for $1.4T AI data center
On November 11, 2025, Nvidia's stock continued to face headwinds, falling around 4% in Friday afternoon trading. This marked the end of a rough week for the world's leading AI chipmaker, with shares declining 3.7% on Thursday and more than 7% over the past five sessions.
Investors appear uneasy about Nvidia's exposure to the Chinese market and the sustainability of the massive investments being made in AI infrastructure. Adding to the caution, OpenAI CEO Sam Altman recently clarified that the company is not seeking government guarantees or bailouts for its $1.4 trillion AI data center investments, after earlier comments from its finance chief had drawn attention.
Despite the recent weakness, Nvidia still holds a roughly 40% gain for the year. Analysts such as LPL Financial's Thomas Shipp say optimism around AI's long-term potential remains intact, even as costs and valuations rise. Nvidia CEO Jensen Huang also stated during a visit to Taiwan that there were no active discussions about selling the company's new Blackwell AI chips to Chinese clients, and the company currently does not anticipate material revenue from China, which could imply a quarterly sales shortfall of $2 billion to $5 billion.
