TLDR
- Nvidia (NVDA) closed Wednesday at $221.30, down 3.2% from $228.52 the day before.
- A hotter-than-expected September inflation report stoked fears of more Federal Reserve rate hikes.
- CoreWeave (CRWV) tumbled more than 16% on debt concerns, and SK Hynix, Micron and ASML also fell.
- Analysts still rate NVDA a “Buy” with an average target of $321.89, and a $150 billion buyback is in place.
- TSMC (TSM) reports Thursday, with investors expecting quarterly profit to rise 60%.
Nvidia (NVDA) stock ended Wednesday at $221.30, down 3.2% from Tuesday’s close of $228.52. The chipmaker led a broad drop in semiconductor names.
A hotter-than-expected September inflation report set the tone. Traders now worry the Federal Reserve could raise rates again.
Long-dated bond yields jumped after the data, then pulled back some. Tech stocks were already uneasy about high yields, rising debt and talk of an AI bubble.
NVDA hit a low of $219.64 during the session. Volume came in at 116.5 million, about 23% below the daily average of 151.6 million.
Other chip names fell harder. SK Hynix lost 6.1%, Micron dropped 4.1%, ASML slid 3.9% and Oracle sank 8.8%.
The weakness began earlier in the week. Marvell and SK Hynix slipped on concerns about Chinese competition.
CoreWeave Rattles the AI Trade
CoreWeave (CRWV) tumbled more than 16% after a chart of its bond yields made the rounds online. The move put its heavy debt load and rising interest bills in the spotlight.
Any pullback in AI spending would hit chipmakers first. They have gained the most as big cloud companies race to build data centers.
Investor Michael Burry is betting against the Nasdaq and chip stocks. He argues AI customers may struggle to earn money from pricey capacity.
Competition is another worry. AMD, Intel, custom accelerators and Huawei are all pushing in, and Nvidia’s China AI-chip market share has reportedly dropped to 34%.
Insiders have been sellers too. They sold about $399 million of stock over the past three months, including $7.6 million by CFO Colette Kress on September 17 under a preset plan.
Analysts Hold the Line
Wall Street has not backed off. Of the analysts tracked by MarketBeat, five rate NVDA Strong Buy, 49 rate it Buy and one says Hold.
Nvidia beat estimates in its last report on August 26. It earned $2.22 per share against a $2.09 forecast, on revenue of $96.22 billion.
The board approved a $150 billion buyback on September 28. That covers up to 2.8% of the company’s stock.
Nvidia also pledged $250 million over five years in compute for U.K. AI safety research. It is reportedly weighing a bigger stake in Reflection AI, though those talks are speculative.
The stock sits near its 50-day average of $223.39, with the 200-day at $210.37. Its market value is about $5.33 trillion.
TSMC reports results Thursday, and investors expect profit to rise 60%. ASML warned it may not fully meet demand in 2027 and 2028.
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