Nvidia Enters Bear Market After 23% Drop Amid AI Bubble Fears

Investor concerns over AI industry bubble

Ongoing investor concerns regarding the artificial intelligence industry are linked to the decline in Nvidia stock.

Broader tech sector and midterm election impact

The Nasdaq index has entered correction territory following a sell-off in big tech stocks. Major stock indexes dropped following a one-day rally that occurred after the 2026 midterm elections.

Nvidia's stock weakness intensified following the midterm elections where Democrats won the Senate and the House. This political shift creates risks of data center moratoriums, particularly in Texas due to the Governor-elect's policy.

Performance of related semiconductor and cloud firms

Benzinga reported on 8 November 2026 that Marvell Technology and Lumentum plunged 57% and 52% from all-time highs following a merger plan. Nvidia-backed neocloud firms including CoreWeave, Nebius, and IREN have also declined in recent months.

Firmus, a privately funded company, recently pulled its initial public offering. SMX is developing technology to track and verify materials worldwide using new capital, reduced debt, and higher equity.

IDC reported on 8 November 2026 that Apple and Samsung are the only companies selling more smartphones this year.

Nvidia financial outlook and buyback plans

Nvidia reported $104 billion in revenue for the second quarter, and management expects annual figures to increase by 70% next year. Analysts expect third-quarter revenue to show a 91% year-over-year increase to $108.9 billion.

This figure could exceed $114 billion given the company's history of beating estimates.

Technical analysis of support levels

NVDA stock has fallen below support levels of $200 and $190.

These technical factors indicate the stock may face further pressure toward the $165 level.

SpaceX capital raise for Nvidia chips

SpaceX recently raised $40 billion for the purpose of purchasing Nvidia chips.

Qualcomm faces sector-wide pressure

Qualcomm stock fell to $162 on Monday, representing a decline of over 37% from its year-to-date high. The company reported that its third-quarter revenue dropped 4% to $9.9 billion, while earnings before taxes fell 24% to $2.96 billion.

Within the QCT division, revenue fell 5% to $8.5 billion, with handset revenue declining 20% to $5.08 billion. Automotive and IoT businesses grew by 61% and 9% respectively during the third quarter.

The industry is currently impacted by "unprecedented memory prices, higher manufacturing and input costs as well as supply chain shortages driven by overall data center demand". This business pressure arises as memory manufacturers have shifted their priorities to the data center industry.

Annual revenue is now projected to reach $42.8 billion, down from the previous target of $44.14 billion.

Looking ahead, Qualcomm expects its non-handset revenue, which includes automotive, data center, and Internet of Things, to reach $40 billion in 2029. The stock has dropped below the $169 support level, which was its lowest point on October 15.

The stock has fallen below the 61.8% Fibonacci Retracement level, the Murrey Math Lines tool's Strong, Pivot, Reverse level, and the 50-day moving average. Technical analysis suggests the stock could potentially fall to the Murrey Math Lines tool's Ultimate Support level at $150.

A move above the $169 resistance level would invalidate the current bearish outlook for Qualcomm stock. Qualcomm is scheduled to publish its financial results on Wednesday.