What's Behind the Selloff in Nvidia Stock?

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00:00I want to dig into all of that and the market reaction this week with Bloomberg's equities

00:03reporter Carmen Reinecke, who has been across this story day in, day out. Carmen,

00:09why are we seeing this ongoing pressure on some of the biggest winners?

00:14Yeah, it's really interesting and like what a week it's been, right? You know,

00:17we have NVIDIA with this blowout earnings report and then two down days immediately following it.

00:22Really what seems to be happening is there are so many macro pressures on the market right now

00:27that that's adding a lot of weight and dragging down the major indexes. But at the same time,

00:31we're seeing that NVIDIA's report, as good as it was, wasn't enough to quell some of these overall

00:37AI fears, right? And so we're seeing a sell-off. We're seeing a very risk-off, you know, mentality

00:43in the markets right now. And one thing that has been kind of interesting is looking at the stocks

00:47that are up today. We're actually seeing Apple outperform and it usually has lately sort of

00:52been opposite of these big AI names because it doesn't have a huge AI piece of the puzzle.

00:58And then we're also seeing Google up, which is still really big optimism after Gemini 3. So

01:03it's just interesting to see a little bit of the split that's happening there in the market.

01:06And much of this, of course, has been built into the worry about, yes, NVIDIA has the demand,

01:11people starting to dig into accounts receivable, into inventory, but that felt like a desire to try

01:17and in retrospect, understand why we were seeing a sell-off rather than seeing that and then seeing

01:23a stock sell-off. So can you talk to us about how things are happening in timing-wise?

01:27The timing has been so interesting. And I think you're totally right that we, you know, I speak

01:32to a lot of investors and people were sort of pulling on different things, but there was no

01:36real like smoking gun great answer as to why, you know, we were seeing this sell-off. But we have

01:42been seeing the market sort of react more to things around a Fed cut, if there's going

01:47to be a rate cut in December. So this morning, you know, it looked like things were kind of

01:51positive and then around the Williams comments, but then, you know, we get you Mish out. And

01:57so it just seems like there's a ton of macro and that is really what's moving the market.

02:04I think one discourse that has been throughout is debt. And debt, particularly among players

02:10like CoreWeave in the NeoClouds, but Oracle in particular, the CDS, the credit default

02:14swaps of Oracle have become almost like a way in which we show anxiety in the great debt

02:20pile-out of certain companies. Is it rational? No one thinks Oracle is suddenly going to default,

02:26but it is being used as some sort of hedge here.

02:28Yeah, totally. And I mean, the stock has just completely fallen off. You know, it had that

02:32huge jump and then we've erased all of that. And the debt question is a really big thing

02:37on investors' minds. And I think it really plays into the fears of the AI bubble or the

02:42debate around it being a bubble, because if these companies start loading up on debt,

02:47there's the potential that they could become over-levered. That could be a bigger issue down

02:51the line. And, you know, with everything as circular as it is, even though these companies

02:57keep addressing it, you know, Jensen spoke about it in NVIDIA's calls, investors are just

03:01not convinced yet. You know, they're just seeing the house of cards. They're worried about

03:06it.