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Jensen Huang, co-founder and chief executive officer of Nvidia Corp.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.
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