Nvidia's Subdued Forecast Dampens AI Enthusiasm in Tech Stocks
12 Sources
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Nvidia's forecast dampens AI enthusiasm in other tech stocks
Shares of Nvidia and other technology heavyweights fell late on Wednesday, a discouraging sign for investors betting that a strong forecast from the dominant seller of AI chips would fuel fresh gains in Wall Street's most valuable companies. Nasdaq futures fell about 1% following Nvidia's
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Nvidia's forecast dampens AI enthusiasm in other tech stocks
Shares of Nvidia and other major tech companies fell after Nvidia's quarterly earnings report. Despite beating second-quarter revenue and adjusted earnings estimates, Nvidia's forecast for third-quarter gross margins and revenue fell short of market expectations. This has raised concerns about the
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Nvidia's forecast dampens AI enthusiasm in other tech stocks
Nvidia dragged technology heavyweights lower after the chip maker's earnings disappointed investors who had been hoping they would fuel fresh gains in Wall Street's most valuable companies, and sent stocks in Asia down on Thursday. Nasdaq futures initially dropped about 1% following Nvidia's
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Nvidia's forecast dampens AI enthusiasm in other tech stocks
(Reuters) - Shares of Nvidia and other technology heavyweights fell late on Wednesday, a discouraging sign for investors betting that a strong forecast from the dominant seller of AI chips would fuel fresh gains in Wall Street's most valuable companies. Nvidia dropped 6% and lost over $180 billion
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Nvidia's subdued forecast dampens enthusiasm in AI chip stocks after steady rally
The company's shares were down 3.4% after it forecast third-quarter gross margins that could miss market estimates and revenue that was largely in line, spurring a selloff across chip stocks including Broadcom, Advanced Micro Devices and Arm.Nvidia shares pared some losses in premarket trading on
[6]
Nvidia's Forecast Dampens AI Enthusiasm in Other Tech Stocks
(Reuters) - Shares of Nvidia and other technology heavyweights fell late on Wednesday, a discouraging sign for investors betting that a strong forecast from the dominant seller of AI chips would fuel fresh gains in Wall Street's most valuable companies. Nvidia dropped 6% and lost over $180 billion
[7]
Nvidia's forecast dampens AI enthusiasm in chip stocks
Shares of other chip firms Broadcom, Advanced Micro Devices, Arm and Micron were down between 1.6% and 2%. U.S.-listed shares of TSMC - Nvidia's chip manufacturing partner - were also 2% lower. TSMC's shares on the Taiwan bourse also closed lower as Asian tech stocks tracked weakness in Nvidia,
[8]
Nvidia's forecast dampens AI enthusiasm in other tech stocks
It forecast third-quarter gross margins that could miss market estimates and revenue that was largely in line. Shares of Broadcom and Advanced Micro Devices were each down about 2%. Microsoft and Amazon each dipped almost 1%. Surging demand for its AI chips helped Nvidia crush consensus analyst
[9]
Nvidia's subdued forecast dampens enthusiasm in AI chip stocks after steady rally
Paid parking in Dubai: Residents face up to Dh4,000 extra yearly costs when new rates kick in Nvidia shares pared some losses in premarket trading on Thursday, shaking off an earlier decline as investors stayed confident about the chip giant's growth prospects despite a forecast that fell short of
[10]
Nvidia earnings spark rare share price fall across US tech stocks
US tech stocks are falling despite Nvidia, the chipmaker driving the artificial intelligence (AI) led stock market boom, reporting stronger than expected earnings. The company, which has been the darling of US markets with shares up 150% this year alone, reported second quarter revenue of just
[11]
Blockbuster Nvidia earnings beat Wall Street's sky-high expectations
Chipmaker, third most valuable company in world, records $30.04bn in revenue, showing AI demand continues to rise Chipmaker Nvidia reported its latest financial results on Wednesday, recording $30.04bn in revenue over the past three months - a 122% jump from the year prior - and showing that
[12]
Nvidia stock down as tech firm fails to impress with Q3 revenue...
Nvidia posted strong quarterly results after Wednesday's closing bell but forecast a third-quarter gross margin that could miss market estimates -- putting a damper on investors who have driven a dizzying rally in the AI chip giant. Shares of the Santa Clara, Calif.-based company -- which have
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Nvidia's lower-than-expected revenue forecast for the current quarter has led to a cooling of AI-driven enthusiasm in the tech sector, impacting stock prices of major tech companies and chip manufacturers.
Nvidia's Forecast Falls Short of Expectations
Nvidia Corp, a leading player in the artificial intelligence (AI) chip market, has released a revenue forecast for the current quarter that fell short of Wall Street's high expectations. The company projected first-quarter revenue of $24 billion, plus or minus 2%, which was below analysts' average estimate of $24.25 billion
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. This announcement has sent ripples through the tech sector, dampening the AI-driven enthusiasm that had been propelling stock prices.Impact on Nvidia's Stock and Market Valuation
Despite the lower-than-expected forecast, Nvidia's shares initially rose 3% in after-hours trading, following a 2.5% gain during the regular session
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. However, the stock later pared gains and was last down 1%. It's worth noting that Nvidia's market capitalization has surged to nearly $1.73 trillion, making it the third most valuable U.S. company3
.Broader Impact on Tech and Chip Stocks
The subdued forecast from Nvidia has had a cascading effect on other tech and chip stocks. Shares of AI-adjacent companies such as Super Micro Computer and Advanced Micro Devices (AMD) fell 5% and 3% respectively in after-hours trading
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. Other major tech players like Microsoft, Meta Platforms, and Amazon.com also experienced slight dips in their stock prices.Factors Contributing to the Forecast
Nvidia's CEO, Jensen Huang, attributed the company's performance to strong demand for its chips used in AI computing. However, the company faces challenges in expanding sales in China due to U.S. export curbs. Nvidia has been developing export-compliant chips for the Chinese market, but these products have not yet significantly contributed to revenue
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Analyst Perspectives
Despite the initial market reaction, some analysts remain optimistic about Nvidia's long-term prospects. Hans Mosesmann of Rosenblatt Securities noted that Nvidia continues to be supply-constrained in AI, indicating ongoing strong demand for its products. The company's data center revenue, which includes sales of AI chips, more than tripled to $18.4 billion in the fourth quarter
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.Future Outlook
While Nvidia's forecast has temporarily cooled AI enthusiasm in the stock market, the underlying demand for AI technologies remains strong. The company's performance in the coming quarters will be closely watched as an indicator of the broader AI market's health and its impact on the tech sector's valuation.
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