NEW YORK — Nvidia shares came under pressure as investors reduced exposure to semiconductor and artificial-intelligence stocks, extending recent volatility in the chip sector ahead of the company's closely watched quarterly results.
Nvidia's shares fell 3.15% on Aug. 10, according to market data cited by TradingKey, with the decline attributed to profit-taking, rotation within the AI sector and broader concerns over interest rates and semiconductor supply chains. The weakness came after a strong run in the stock, adding to pressure on other technology and chip companies.
The move reflected a wider shift in semiconductor trading rather than a company-specific announcement from Nvidia. Semiconductor stocks have faced periodic selling as investors reassess valuations and the pace of spending on artificial-intelligence infrastructure. Recent trading also showed weakness among other chip-related companies, including Applied Materials, which was cited as being affected by sector volatility and macroeconomic uncertainty.
Nvidia remains one of the largest beneficiaries of the global expansion of AI computing infrastructure. The company reported record fiscal first-quarter 2027 revenue of $81.6 billion in May, an 85% increase from a year earlier, while data-center revenue rose 92% to $75.2 billion. Nvidia also authorized an additional $80 billion for share repurchases and increased its quarterly dividend.
Investors are now looking toward Nvidia's next earnings report, scheduled for Aug. 26. The results are expected to provide a fresh indication of demand for its latest AI computing platforms and the pace of spending by major cloud and technology companies.
Nvidia's most recent outlook called for fiscal first-quarter 2027 revenue of $78 billion, plus or minus 2%, with the company saying its forecast did not assume data-center compute revenue from China. The company has also continued developing its next-generation Vera Rubin computing platform as it expands its AI infrastructure portfolio.
The stock's recent weakness therefore comes against a backdrop of strong underlying financial growth but heightened sensitivity across the technology sector to market-wide shifts in risk appetite. Investors will have the Aug. 26 earnings release and accompanying guidance as the next major scheduled test of expectations for Nvidia's AI business.
