Nvidia shares fell sharply on Thursday as Washington's political shift triggered selling across the artificial intelligence industry. Nvidia Corporation (NVDA) traded at $182.52, down $17.61, or 8.80%, after an earlier market snapshot showed a decline of 7.55%. The drop extended a retreat from the chipmaker's October record high and pushed the stock toward its fifth consecutive weekly loss. The sell-off followed Tuesday's midterm elections, in which Democrats won control of Congress, a result that has placed the industry's data center expansion under a fresh policy spotlight.

Nvidia's Slide Deepens as Chipmakers Retreat

Nvidia's Thursday losses deepened in morning trading, when shares briefly dropped more than 9% amid widespread technology sector weakness. That intraday fall quickly erased nearly $450 billion in company value, reducing Nvidia's market capitalization to $4.4 trillion. The decline also threatened the company's worst daily performance since January 2025, when concerns surrounding DeepSeek disrupted artificial intelligence valuations.

Since its October 6 closing high, Nvidia has surrendered nearly one quarter of its share price and market value. The cumulative decline has wiped out almost $1.4 trillion from its valuation, underscoring the scale of the recent reversal. Shares have also fallen below their 200-day moving average, an indicator that tracks longer-term stock price trends.

The pressure extended well beyond Nvidia, as traders sold semiconductor stocks across the board during Thursday's retreat. Advanced Micro Devices, Micron Technology, and Arm Holdings recorded double-digit losses, while Broadcom and Taiwan Semiconductor also suffered steep declines. The Philadelphia Semiconductor Index remained more than one third below its June high, reflecting broader weakness across chipmakers — a sign the sector's pullback was well established before this week's election results.

Democratic Congressional Victory Raises Data Center Concerns

Democrats secured control of both chambers of Congress following Tuesday's midterm elections, bringing new political pressure to artificial intelligence companies. During their campaigns, candidates from both major parties criticized the electricity demands and local effects of expanding data center construction. Their objections centered on rising power costs, strained electricity networks, and the footprint of facilities supporting artificial intelligence.

The election results raised the prospect of additional congressional scrutiny and stricter requirements for future data center developments. Lawmakers had already considered legislation requiring operators to shoulder more electricity expenses linked to their computing facilities. A Senate proposal approached passage earlier this autumn, placing energy costs at the center of the industry's policy debate. How the new Congress handles that proposal is a key point to watch for the industry's expansion plans.

Data centers purchase advanced processors to train artificial intelligence models and handle the computing demands of businesses and technology companies. Nvidia supplies many of those high-performance chips, making data center construction an important driver of demand for its products. Possible delays to new facilities could therefore affect the pace of equipment purchases across its major customer base.

Historical Losing Streaks Highlight Nvidia's Volatility

Nvidia has rarely endured five consecutive losing weeks since entering public markets through its initial public offering in 1999. Historical trading records identify only 12 earlier periods when the stock fell for at least five straight weeks. Its longest weekly losing run lasted seven weeks during the summer of 2008, amid exceptional turmoil across global financial markets.

The company's previous five-week losing streak ended in October 2022, shortly before the introduction of ChatGPT accelerated artificial intelligence interest. Nvidia subsequently experienced a rally, and its share price roughly quadrupled during the following twelve months. Past recoveries varied, however, and earlier prolonged declines did not consistently lead to immediate gains afterward.

Across those 12 earlier losing streaks, Nvidia shares traded higher after thirteen weeks on only five occasions. Eight periods produced gains after one year, while the 2002 episode preceded a decline approaching two thirds in value.

Thursday's losses now combine the chipmaker's historical volatility with political pressure over data centers and a semiconductor sell-off affecting the broader technology market. Near-term markers to watch include whether the week closes as Nvidia's fifth consecutive weekly loss, whether shares remain below their 200-day moving average, and how the new Congress approaches data center energy rules.

This article originally appeared on Blockonomi.