Nvidia (NVDA-7.37%) and other semiconductor stocks gave up premarket gains and fell in early Thursday Wall Street trading. While the AI chipmaker yesterday posted earnings that surpassed fourth-quarter estimates with robust guidance, they may have fallen short of the complete blowout that some investors had anticipated.
Rival chipmakers Advanced Micro Devices (AMD-4.26%), Micron (MU-5.80%), Broadcom (AVGO-5.70%), and Intel (INTC-0.93%) also declined, shedding pre-opening gains.
“This is telling you more about the state/sentiment of the market, and [its] volatile nature … than it tells you about how Nvidia is doing in our eyes,” Mahoney Asset Management CEO Ken Mahoney said before the open. “These results mean a lot for the stock market and the AI ecosystem.”
Nvidia’s strong order book for its newest models is an indication that its customers are continuing to invest in artificial intelligence, and may lay to rest concerns that DeepSeek’s recently unveiled, cheaper AI model has prompted companies to defer or reduce their spending plans.
“CEO commentary suggests Blackwell demand is ‘amazing,’ supported by strong top-line results,” Gabelli Funds’ John Belton said. “It should be a positive read for AI demand and the investment cycle.”
Elsewhere, TSMC (TSM-6.17%) stock fell in Taipei on Thursday. Taiwan Economy Minister Kuo Jyh-huei said the chip foundry would need government permission for any overseas joint venture, but there are no restrictions on making the most-advanced chips overseas other than for China, Reuters reported.
The Trump administration has pushed to have TSMC buy Intel’s chipmaking operations or at least operate them as a joint venture. The Taiwanese firm isn’t actually interested, and even the threat of tariffs probably won’t be enough to force a deal.
The nation continues to negotiate with the U.S. to seek the best conditions possible for Taiwanese companies under possible new American tariffs, Kuo told the news agency.
—Britney Nguyen contributed to this article.
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