Key Highlights

● Nvidia edged lower to $213.66 on October 29 as chip stocks cooled.

● The PHLX Semiconductor index snapped a four-day winning streak and the Nasdaq-100 fell to 29,402.51.

● Alphabet's worst day since its 2004 IPO revived concerns over mounting AI costs.

● Friday's open will digest Intel's after-hours slide and Amazon's $220 billion capex plan.

Nvidia (NASDAQ:NVDA) held up better than many of its chip peers on Thursday, slipping only modestly as the semiconductor index ended a four-day winning streak.

A small dip on a big day

For a company at the center of the artificial intelligence trade, Nvidia had a relatively quiet Thursday. The stock edged lower to close at $213.66 on October 29, according to market data. That was a mild move compared with the carnage in parts of the technology sector.

The chip designer, whose graphics processors power most of the world's AI Training and inference workloads, was still caught up in the broader cooling of semiconductor stocks. The PHLX Semiconductor Index snapped a four-day winning streak, and the Nasdaq-100 fell to 29,402.51.

Nvidia was one of the most heavily traded names of the day. Its Options topped 1 million contracts, as did those of Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) and Tesla (NASDAQ:TSLA), according to market data.

Headlines in the background

Nvidia had some company-specific news of its own. One report said the Justice Department was looking into Nvidia's $12.93 billion Acquisition of Hugging Face, the AI model platform. Regulatory reviews of large technology deals are common, and no outcome has been reported.

The stock's modest decline suggested investors were more focused on the sector picture than on that inquiry.

Alphabet's shadow

The day's dominant story belonged to Alphabet. Its results, which included negative free Cash Flow of $9.07 billion and heavy Capital spending, revived what media reports described as "concerns over mounting AI costs." The stock suffered its worst day since its 2004 IPO, erasing roughly $500 billion of market value.

Market data showed that was the second-largest one-day loss of Market Value on record, behind only Nvidia's own $589 billion drop in January 2025. Another source noted that Alphabet would have needed to close near $274.75 to surpass Nvidia's record.

The irony is that much of the AI spending by companies like Alphabet flows to chip suppliers such as Nvidia. Alphabet kept its 2026 capital spending guidance of $195 billion to $205 billion and said 2027 capex would rise significantly, which on its face is good news for chip suppliers. But investors are increasingly questioning whether that spending will pay off, and that doubt weighs on the whole Supply chain.

A chip sector in retreat

Other chipmakers fell harder. Marvell Technology (NASDAQ:MRVL) sank to $218.34 on reported Takeover talks with Lumentum (NASDAQ:LITE). Micron (NASDAQ:MU) slid to $934.27 as memory stocks cooled, and AMD (NASDAQ:AMD) closed at $566.42. Intel (NASDAQ:INTC) fell to $92.07 before plunging in extended trading after weak fourth-quarter guidance. KLA (NASDAQ:KLAC) was a standout, jumping on a record quarter.

The broader market, meanwhile, rotated rather than retreated. More than 400 S&P 500 members rose, the Russell 2000 climbed 28.71 points to 2,859.22, and health care led the sector table. "Money is rotating within the market rather than leaving it," one market strategist said, according to market commentary.

Rates add pressure

Economic data gave Growth Stocks another reason for caution. Third-quarter GDP grew faster than forecast, and September PCE Inflation ran hot. The Federal Reserve held rates steady on Wednesday, but two officials favored a hike, and traders continued to lean toward a December increase. Higher rates make future Earnings less valuable today, which can weigh on richly valued tech stocks.

What to watch

Nvidia's next test arrives with Friday's open, when the market digests Intel's after-hours slide and Amazon's $220 billion capex plan. Amazon's commitment to heavy spending could reassure investors about AI chip demand, even as its negative free cash flow raises the same cost questions that hit Alphabet.

Arm (NASDAQ:ARM)'s early-November report will offer another read on the sector. Investors will also watch for any updates on the Hugging Face review and on the Fed's December 8 to 9 decision.