Nvidia Shares Plunge 4.89% as $49.49 Billion Surge Propels It to Most Actively Traded Stock

On October 10, 2025, Nvidia (NVDA) closed with a 4.89% decline, despite surging trading volume of $49.49 billion—a 39.99% increase from the prior day—ranking it as the most actively traded stock. The drop followed a mix of strategic updates and market dynamics impacting investor sentiment.

Recent developments highlighted Nvidia’s evolving role in AI infrastructure. A key focus remained on its data center segment, where demand for AI chips continued to outpace supply. However, analysts noted growing scrutiny over long-term sustainability of margins amid rising R&D costs. Regulatory developments in key markets also drew attention, though specifics remained unconfirmed.

Investor positioning saw shifts as algorithmic strategies adjusted to market conditions. A 1-day cross-sectional approach targeting high-turnover stocks demonstrated neutral bias toward NVDA, with equal-weight portfolios rebalancing daily. Transaction costs and slippage were not factored into these models, which benchmarked performance against the S&P 500 ETF (SPY).

To execute the strategy, the following parameters were applied: a universe of all NYSE/NASDAQ/AMEX-listed stocks (survivor-bias-free), top 500 tickers by share turnover, and daily rebalancing at close. Holding periods were limited to 1 day with equal position sizing. The back-test, spanning January 3, 2022, to October 10, 2025, confirmed these assumptions but emphasized the need for adjustments if alternative benchmarks or cost structures were introduced.