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[1]
Nvidia Stock Finds Modest Support from Tepid Dip-Buyers
Colin is an Associate Editor focused on tech and financial news. He has more than three years of experience editing, proofreading, and fact-checking content on current financial events and politics. He received his M.A. in journalism from The New School and his B.A. in history and political science from McGill University. Nvidia (NVDA) shares were up slightly in midday trading Friday, suggesting the stock found some support from dip-buyers after yesterday's sell-off. Nvidia stock was up about 2% in recent trading after tumbling 8.5% yesterday. Nvidia on Wednesday reported better-than-expected quarterly results, but Wall Street demonstrated on Thursday that's no longer enough from its favorite AI stock. Nvidia beat revenue estimates by the smallest amount in two years, underwhelming investors who have grown accustomed to gargantuan beats from the AI chip leader. The results failed to revive the ailing AI rally. High-flying, richly-priced stocks like Palantir (PLTR), Applovin (APP), and Vistra (VST), which all soared last year on enthusiasm about their AI-fueled growth, have dropped sharply in the last week as investors have grown cautious amid a slew of economic and political concerns. Even Friday morning, after a promising print of the Federal Reserve's preferred inflation measure, all three stocks slumped at the open. (Applovin has since followed Nvidia stock to trade slightly higher.) AI stocks have also been weighed down this month by lingering concerns about the impact of Chinese start-up DeepSeek's R1 reasoning model, which its developers say operates at a far lower cost than comparable U.S. models. R1's success and efficiency raised concerns among investors that U.S. hyperscalers and other AI developers could scale back their spending on Nvidia's most advanced technology. Major tech companies have since reiterated their commitment to spending hundreds of billions on AI infrastructure in the coming years, but that hasn't pulled Nvidia and other chip stocks out of their funk.
[2]
Nvidia Stock Finds Support from Friday Dip-Buyers
Colin is an Associate Editor focused on tech and financial news. He has more than three years of experience editing, proofreading, and fact-checking content on current financial events and politics. He received his M.A. in journalism from The New School and his B.A. in history and political science from McGill University. Nvidia (NVDA) shares finished Friday higher, suggesting the stock found some support from dip-buyers after yesterday's sell-off. Nvidia stock ended the day up nearly 4% in recent trading after tumbling 8.5% yesterday. Nvidia on Wednesday reported better-than-expected quarterly results, but Wall Street demonstrated on Thursday that's no longer enough from its favorite AI stock. Nvidia beat revenue estimates by the smallest amount in two years, underwhelming investors who have grown accustomed to gargantuan beats from the AI chip leader. The results failed to revive the AI rally. High-flying, richly-priced stocks like Palantir (PLTR), Applovin (APP), and Vistra (VST), which all soared last year on enthusiasm about their AI-fueled growth, had dropped in the recent sessions as investors have grown cautious amid a slew of economic and political concerns. Even Friday morning, after a promising print of the Federal Reserve's preferred inflation measure, all three stocks slumped at the open. (They all finished the day higher, however.) AI stocks have also been weighed down this month by lingering concerns about the impact of Chinese start-up DeepSeek's R1 reasoning model, which its developers say operates at a far lower cost than comparable U.S. models. R1's success and efficiency raised concerns among investors that U.S. hyperscalers and other AI developers could scale back their spending on Nvidia's most advanced technology. Major tech companies have since reiterated their commitment to spending hundreds of billions on AI infrastructure in the coming years, but that hasn't pulled Nvidia and other chip stocks out of their funk.
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Nvidia's stock recovers slightly after a significant drop, reflecting broader trends in AI-related stocks and investor sentiment. The article explores recent market movements, earnings reports, and challenges facing the AI industry.
Nvidia (NVDA), a leading AI chip manufacturer, saw its stock rebound on Friday, closing nearly 4% higher after a substantial 8.5% decline the previous day 12. This recovery suggests that dip-buyers found some support for the stock, despite recent market volatility in the AI sector.
On Wednesday, Nvidia reported better-than-expected quarterly results. However, the company's performance failed to meet the sky-high expectations of investors who have grown accustomed to exceptional beats from the AI chip leader 1. Nvidia's revenue estimates beat was the smallest in two years, which underwhelmed Wall Street and contributed to Thursday's sell-off 2.
The lukewarm response to Nvidia's earnings has highlighted a shift in investor sentiment towards AI stocks. High-profile companies such as Palantir (PLTR), Applovin (APP), and Vistra (VST), which experienced significant growth last year due to AI-related enthusiasm, have recently faced sharp declines 1. This trend reflects growing caution among investors amid various economic and political concerns.
Adding to the pressure on AI stocks is the recent success of DeepSeek, a Chinese start-up. Their R1 reasoning model, which reportedly operates at a much lower cost than comparable U.S. models, has raised concerns about potential reduced spending on Nvidia's advanced technology by U.S. hyperscalers and other AI developers 12.
Friday morning brought a promising print of the Federal Reserve's preferred inflation measure. Despite this positive economic indicator, AI-related stocks initially slumped at market open, further illustrating the current volatility in the sector 1. However, by the end of the trading day, many of these stocks, including Nvidia, Palantir, Applovin, and Vistra, managed to close higher 2.
Despite short-term market fluctuations, major tech companies have reaffirmed their commitment to substantial AI infrastructure investments. These companies plan to spend hundreds of billions of dollars on AI technology in the coming years 12. However, these assurances have not yet been sufficient to fully stabilize Nvidia and other chip stocks, which remain in a state of flux.
The recent market movements highlight the evolving landscape of the AI industry. While there is still significant enthusiasm and investment in AI technologies, investors are becoming more discerning and cautious. The emergence of competitive solutions from companies like DeepSeek also underscores the increasingly global nature of AI development and the potential for disruption in the market.
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