Wall Street faith in the artificial intelligence trade is cracking. Nvidia shares fell despite reporting a record 106% year-over-year revenue growth, signaling that investors are now demanding more than top-line expansion from AI infrastructure bets. The selloff deepened on October 31, 2026, when Intel collapsed nearly 29% in a single session.
Intel crash came even as its data center segment posted 78% growth. The problem: manufacturing shortages are preventing the chipmaker from fully meeting booming AI demand, while weak PC sales and heavy factory costs continue to weigh on its recovery. The combination has intensified selling across AI chipmakers and raised broader concerns about the returns on massive AI infrastructure spending.
For crypto markets, the AI narrative has been a key driver for decentralized AI and GPU-related tokens. The equity selloff may spill over into AI-focused digital assets, as traders reassess whether AI capital expenditure can translate into sustainable profits. Tokens tied to decentralized AI, rendering networks, and machine-learning infrastructure could face short-term sentiment pressure even if their underlying fundamentals remain unchanged.
