Tech Stocks End Brutal Week as AI Selloff Deepens After Nvidia Earnings

Nvidia CEO Jensen Huang tried to calm fears, rejecting talk of an “AI bubble” and pointing to “off the charts” demand for the company’s chips. But the optimism didn’t last. The stock briefly rallied after earnings and then reversed, pulling much of the market down with it.

Every member of the Magnificent 7 except Alphabet ended the week in the red.

• Amazon fell 6%

• Microsoft dropped 7%

• Nvidia slipped for the week despite its revenue beat and strong guidance

• Only Alphabet gained, rising 8%, helped by early momentum around its new Gemini 3 AI model

Oracle, a major Nvidia customer, slumped 11%, while chip names tied to the AI buildout also tumbled. AMD and Micron fell more than 16% each, Marvell slid 10%, and quantum computing firms IonQ and D-Wave lost more than 11% and 13%, respectively.

CoreWeave, which rents Nvidia chips to data centers, initially surged on Nvidia’s report but still closed the week down 7%.

The selloff comes as valuations across the tech sector appear stretched, raising comparisons to previous market bubbles. Bridgewater founder Ray Dalio told CNBC the market is “definitely in a bubble,” while investor Michael Burry warned that major cloud providers may be underestimating chip depreciation, calling it “one of the more common frauds of the modern era.”

Burry recently disclosed bearish bets against Nvidia and Palantir. Shares of Palantir, which supplies AI software to governments and businesses, fell 11% this week and have lost nearly a quarter of their value in November.

Investors had hoped Nvidia’s results would stabilize sentiment after weeks of pressure on AI-linked names. Instead, the report intensified concerns that the AI boom is running ahead of real-world returns, leaving markets jittery as tech heads into the final stretch of the year.