Nvidia Shares Plunge 4.89% as Regulatory and Economic Pressures Weigh on AI Chip Giant

Nvidia (NASDAQ: NVDA) shares fell 4.89% on October 10, 2025, hitting their lowest level since September 2025, with an intraday decline of 5.46%. The selloff reflects mounting concerns over regulatory, economic, and strategic headwinds facing the AI chip giant.

Recent U.S. export restrictions on AI chips to China have had a direct and severe financial impact. Nvidia disclosed a $5.5 billion charge in fiscal 2026 for H20 products, a modified GPU designed to comply with prior export rules but now effectively banned under stricter Trump administration policies. Analysts estimate the restrictions could cost the company $14–18 billion in revenue, exacerbating a decline in China’s contribution to its revenue, which dropped from 26% in fiscal 2022 to 13% in fiscal 2025.

Regulatory pressures intensified in October as the U.S. Justice Department reportedly launched an antitrust probe into Nvidia, adding to investor anxiety. While the company denied receiving a formal subpoena, the investigation aligns with broader scrutiny of tech giants and raises risks of legal challenges that could disrupt its market dominance. The stock fell an additional 1.7% following the news, contributing to a broader Nasdaq decline.

Broader macroeconomic concerns and shifting investor sentiment toward AI valuations further weighed on the stock. Despite strong earnings in late September, Nvidia’s revised guidance disappointed investors, who are now questioning the sustainability of sky-high valuations for AI-driven firms. The company’s market value plummeted $279 billion in a single day in October, reflecting fears of a potential economic slowdown and reduced demand for unproven technologies.

Analysts remain divided. While some have cut price targets—Bank of America reduced its estimate to $160 from $200—others like Wedbush’s Dan Ives see the selloff as a buying opportunity. However, strategic risks persist, particularly the long-term revenue implications of losing access to China and the competitive threat from rivals like Intel, whose stock has fallen 59% in 2025. Nvidia’s leadership in advanced AI chips, including its Blackwell architecture, remains a key strength, but the path forward is clouded by regulatory and economic uncertainties.