Key Takeaways
- Shares of NVDA traded at $193.35 in Friday premarket, down 1.2%, heading toward an 8%+ weekly decline
- The chip giant has lost its $200 support level amid broader technology sector weakness tied to AI investment worries
- One market strategist notes capital flowing from Nvidia toward memory chip companies including Micron and Sandisk
- CFO Colette Kress forecasts annual AI infrastructure expenditures reaching $3–$4 trillion before 2030
- Trading at a forward P/E near 23.8, Wall Street projects 45.6% revenue CAGR extending to fiscal 2029
Shares of Nvidia (NVDA) were changing hands at $193.35 during Friday’s premarket session, reflecting a 1.2% daily decline and positioning the chipmaker for a weekly drop exceeding 8%. This represents the company’s most significant weekly setback since April 2025.
The semiconductor leader appeared to establish support near the $200 threshold following its rebound earlier in the year. However, that technical floor crumbled Thursday as fresh anxieties surrounding artificial intelligence capital expenditures sparked widespread selling across the technology sector.
Nasdaq 100 futures declined 1.2% Friday morning, maintaining downward momentum.
The weakness extends beyond Nvidia alone. Memory semiconductor manufacturers are experiencing similar pressure, with Micron (MU) declining 5.6% and Sandisk (SNDK) retreating 5.7% during premarket hours.
Richard Reyle, serving as chief investment officer at Questar Capital Partners, identified a meaningful sector shift underway. “The same hot money that chased Nvidia over the past few years has now discovered the memory stocks,” he noted. “We would not be buying big tech stocks or AI stocks at current levels, as their dominance is starting to erode.”
Barron’s highlighted Nvidia as a featured pick on May 13, with shares at $226. The stock has surrendered 13% since that recommendation.
Executive Commentary on Growth Trajectory
Notwithstanding recent price action, the fundamental investment thesis supporting Nvidia remains largely intact. During the Q1 fiscal 2027 earnings conference call, CFO Colette Kress conveyed to shareholders that artificial intelligence infrastructure investments should climb to $3–$4 trillion on an annual basis by decade’s end.
To provide perspective, Goldman Sachs projects current calendar year spending at $765 billion. Reaching the median target within Kress’s forecast — $3.5 trillion by 2029 — would signify 358% expansion over three years.
Nvidia maintains a commanding market position in data center graphics processing units. Demand for its Blackwell architecture remains robust, while the forthcoming Vera Rubin platform, engineered specifically for agentic artificial intelligence applications, is scheduled to commence deliveries during Q3.
That product roadmap looks substantial for an enterprise already commanding a $4.7 trillion market capitalization.
Financial Metrics and Street Expectations
With a forward price-to-earnings multiple hovering around 23.8, NVDA is trading at valuations below certain periods during the previous two years. Whether this pricing represents an attractive entry point or continued downside risk hinges on individual perspectives regarding AI spending sustainability.
Sell-side research analysts maintain predominantly optimistic stances. Consensus estimates project revenue expanding at a 45.6% compound annual growth rate spanning fiscal 2026 through fiscal 2029. Adjusted earnings per share are anticipated to advance at approximately 49% annually across the identical timeframe.
NVDA has registered a 6.7% gain year-to-date while delivering 944% returns across the trailing five-year period.
The equity’s 52-week trading range spans $151.49 to $236.54. Current pricing sits within the lower portion of that boundary.
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