**Nvidia Shares Plummet Amid Fears of AI Spending Slowdown**

Nvidia's stock experienced a significant decline of nearly 5% on Thursday, driven by investor concerns surrounding a potential decrease in artificial intelligence spending and possible delays in the delivery of its AI chips. This downturn had a ripple effect across the semiconductor sector, with the PHLX semiconductor index plummeting over 4%, outpacing the broader market decline.

The broader semiconductor industry did not escape unscathed. Nvidia’s competitors, including Advanced Micro Devices (AMD), saw a 2.7% drop, while Intel and Qualcomm each experienced roughly 3% declines. Broadcom fell by 4.5%, and Arm saw the steepest drop among its peers, plunging nearly 9%.

Microsoft's recent earnings report added to the investor jitters. The tech giant disclosed that delayed shipments of GPUs from third parties affected the growth of its AI cloud business for the fiscal quarter ending September 30, 2025. Notably, Microsoft relies heavily on Nvidia's GPUs for its data centers that support its AI software. According to analyst Gil Luria from D.A. Davidson, Microsoft’s acknowledgment of not meeting demand due to data center delays suggests potential supply issues with Nvidia’s chips.

Adding to Nvidia’s woes, Microsoft's Chief Financial Officer Amy Hood hinted at a future slowdown in AI-related spending during an analyst call, though she did not specify the exact timing. Google parent Alphabet also signaled a deceleration in capital expenditures for AI and other growth areas in its third-quarter earnings report, stating that its spending will not increase in the fourth quarter.

Advanced Micro Devices further exacerbated market concerns with its quarterly earnings report. The chipmaker’s fourth-quarter sales outlook fell slightly below expectations, predicting revenue of $7.5 billion against an anticipated $7.55 billion. This forecast resulted in the biggest single-day stock loss for AMD in two years, with shares taking a substantial hit on Wednesday.

Despite the concerns, big tech companies continue to see their AI-related expenditures rise substantially. Microsoft's capital expenditures nearly doubled to $20 billion in its latest quarterly report. Meta reported a 36% increase in expenses, totaling $9.2 billion, while Google's expenditures surged 63% to $13 billion. Meta also projected significant capital expenditure growth in 2025.

Nvidia is set to report its third-quarter earnings on November 20. According to Bloomberg consensus data, analysts predict adjusted earnings per share to rise by 84% to $0.74, with revenue expected to increase by 83% to $33 billion.