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Dow Jones NewsMay 6, 1:22 PM UTC
DJ Nvidia Stock Drops. An Early Look at What to Expect From the Chip Maker's Earnings. -- Barrons.com
By Adam Clark
Nvidia stock was falling early on Tuesday, alongside a broader selloff in tech stocks. The focus is shifting to the chip maker's earnings report, set to be released later in the month.
Nvidia shares were down 1.1% at $112.56 in premarket trading. The stock fell 0.6% in Monday's session. The tech-heavy Nasdaq Composite is set to open Tuesday trading down 1.2%.
The stock is down 15% this year through Monday's close. The threat of tariffs is hanging over the chip industry as the Trump administration investigates imports of semiconductors on national security grounds.
In the absence of further news on tariffs, the focus turns to Nvidia's earnings on May 28. The company is forecast to report earnings per share of 89 cents and revenue of $43.12 billion, according to a FactSet poll of analysts.
The signs are positive for the company as Microsoft, Meta Platforms, and Amazon.com all said they would continue to spend heavily on artificial-intelligence infrastructure, which includes Nvidia's chips.
"Capex [capital expenditure] growth is slated to decelerate in 2025 but hyperscalers are still expected to grow capex 35% YoY [year on year] in 2025, far outpacing forecasts for the rest of the index," wrote BofA Securities analyst Savita Subramanian in a research note.
However, the key questions to be resolved include how many chips Nvidia has been able to sell to Chinese customers in the face of tightened U.S. restrictions and how quickly the company has ramped up production of its new Blackwell AI servers.
Among other chip makers, Advanced Micro Devices was falling 1.2% and Broadcom was dropping 2.1% in premarket trading. The iShares Semiconductor exchange-traded fund is down 1.7%.
Write to Adam Clark at adam.clark@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
May 06, 2025 09:22 ET (13:22 GMT)
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