By Dr. James Fox
Publication Date: 2025-11-24 08:33:00
Image source: Getty Images
On Thursday (20 November), the Nvidia (NASDAQ:NVDA) share price opened 4% up, and then was 2% down by the end of the trading day. That might not sound that significant. But it’s huge. This is a company with a $4.5trn valuation. These are huge inflows and outflows of money.
Thursday’s share price action followed Nvidia’s results — released on Wednesday evening after the market closed. The earnings report was originally taken well, with the shares up more than 6% in after hours trading.
So what’s happened? And what changed?
Several theories
In truth, no one really knows exactly why the share price fell. My excellent colleague Stephen Wright suggested the market became a little uncertain about Nvidia’s numbers and credentials, coupled with the CEO telling the market that the deal with OpenAI may not go ahead.
That could be true, but it’s also worth noting that there wasn’t a single downgrade from an analyst following the results. More than 20 analysts issued upgrades to their forecasts or reiterated their position. Yes, analysts can be wrong. But that’s a lot of them pointing in the same direction. The stock’s now 41% below its average share price target.
The next theory, which is certainly a contributing factor, was UK labour data. The US added 119,000 jobs in September, which was more than anticipated. This notion of a stronger labour market puts less pressure on the Federal Reserve to…
