Why Nvidia Stock Fell From Its Record High — and Why SpaceX Is Now in the Story

Nvidia stock has had a strange month. It hit a record high in early October 2026, then fell sharply, then bounced back a little, all while one of the biggest names in tech kept buying into its story. If you are wondering why Nvidia stock is down from its high, and why SpaceX keeps coming up in the same conversation, here is the simple version.

This article explains the news. It is not investment advice.

How far has Nvidia stock fallen?

Nvidia shares reached a high of about $243 earlier in October 2026, with a 52-week high of $243.37. By late October, the stock had dropped by roughly 13% from that peak, falling to around $210 to $213.

On October 29, 2026, Nvidia closed at $213.66, down $1.72, or 0.80%, on the day. At that level, the company was still worth around $5.2 trillion, roughly tied with Apple as the world’s most valuable company. So this is a pullback from a record, not a collapse. Still, a drop of that size in a company that big gets a lot of attention.

Why did Nvidia stock fall?

The main reason is worry about the AI boom itself. Big tech companies are spending huge amounts of money on AI data centers, and that spending should be good news for Nvidia, which makes the chips those data centers run on. But it also raises a question investors keep asking: can this spending last?

That worry grew during tech earnings season in October. When large companies announced big spending plans, some investors saw growth. Others saw rising costs, heavy borrowing, and a fear that AI companies are valued higher than their current profits can support. When that mood takes hold, Nvidia, as the most famous AI stock, often falls first and hardest.

Barron’s described tech earnings as a “mixed blessing” for Nvidia for exactly this reason: the spending commitments are a boost for chipmakers, but they also feed concern about whether the AI boom is sustainable.

Where does SpaceX fit in?

SpaceX is the other side of the story, and it is much more positive for Nvidia. SpaceX, run by Elon Musk, has said it will use Nvidia chips exclusively for its AI business. Musk has called Nvidia’s Vera Rubin chip design the best on the market, and the two companies are also working together on chips that can handle cosmic radiation for data centers in orbit.

On SpaceX’s third-quarter earnings call on October 20, 2026, Musk said the company plans to sharply increase its AI spending, aiming for annual recurring revenue of between $500 billion and $1 trillion by the end of 2027. He said SpaceX could have up to 3 gigawatts of computing capacity by the end of 2026, and add another 10 gigawatts in 2027, with a goal of adding as much as 20 gigawatts.

Then, on October 25, Musk said SpaceX had closed about $40 billion in debt financing to buy graphics processing units, or GPUs. The Financial Times had earlier reported that the financing was meant to buy Nvidia chips, although Musk’s own post did not name the supplier. Since Musk has already said SpaceX will use Nvidia chips exclusively, most coverage has treated the deal as good news for Nvidia.

To put the size in perspective, some analysts estimate Nvidia earns roughly $40 billion in revenue per gigawatt of computing capacity. On that math, 10 extra gigawatts could mean around $400 billion in revenue, although that is an analyst estimate, not a confirmed order, and building that much capacity depends on power, cooling, and equipment that can be hard to get.

Why did the stock bounce back a little?

On October 26, Nvidia shares rose about 2.4% to close at $216.00. Two things helped: the AI trade got a lift after Anthropic filed for an IPO, and the SpaceX $40 billion GPU financing news was still fresh. Even after that bounce, the stock was still about 10% below its record close in early October.

In short, the market is pulling Nvidia in two directions at once. On one side, there is real, large demand for its chips, including from SpaceX. On the other side, there is worry that the AI spending boom is moving too fast, costs too much, and is built on too much debt. That tug-of-war is why the stock has been swinging so much in October.

What should you watch next?

Three things matter most from here. First, Nvidia’s own earnings report, since Nvidia is usually one of the last big tech companies to report. Second, whether big tech companies keep raising their AI spending plans or start to slow down. And third, whether SpaceX’s huge computing plans turn into actual chip orders on the scale Musk has described.

Until those answers arrive, expect the stock to stay jumpy. A single earnings report, spending announcement, or debt warning can move it several percent in a day, in either direction.

Frequently asked questions

Why is Nvidia stock down?

Nvidia fell about 13% from its early-October high of around $243 to roughly $210 to $213 by late October, as investors worried that heavy AI spending by big tech companies may not be sustainable, even though that spending helps chipmakers.

What is the SpaceX Nvidia deal?

SpaceX has said it will use Nvidia chips exclusively for its AI business. Musk said on October 25 that SpaceX closed about $40 billion in debt financing to buy GPUs, and SpaceX plans to greatly expand its computing capacity in 2027.

What was Nvidia’s stock price on October 29, 2026?

Nvidia closed at $213.66 on October 29, 2026, down $1.72, or 0.80%, on the day.

Is Nvidia still the world’s most valuable company?

As of late October 2026, Nvidia was roughly tied with Apple at a market value of around $5.2 trillion, after struggling to hold the top spot during the pullback.