Nvidia has fallen below $200 per share—a 15% decline from its recent high—as investors become more selective about AI stocks and capital flows toward competing opportunities like the SpaceX IPO.

What happened: Nvidia's stock price has dropped below $200 per share, returning to levels last seen in October. The company is now approximately 15% below its recent high of $236+, and another 5% decline would place it in official bear market territory (a 20% drop, around $189).

Why it matters: Despite strong revenue growth and elevated AI infrastructure spending, investors are reevaluating expectations for AI companies rather than responding to deteriorating fundamentals. The massive SpaceX IPO scheduled for the day after the article's publication may be drawing cash away from even winning stocks. Nvidia trades at 22 times forward earnings—closer to the broader market than investors might expect—yet questions remain whether explosive growth rates from the early AI boom can continue indefinitely.

What to watch: Nvidia's next major support zone sits near last year's trading range between $180 and $190. A more severe decline would require one of three developments: AI infrastructure spending slowing materially, corporate customers delaying GPU purchases, or earnings growth falling below current expectations. None of those scenarios have emerged in reported results so far.