Some analysts pointed out that Nvidia rarely misses at the financial reporting level, but the current market environment requires the company to answer questions that obviously go beyond how many chips it sells.
Hardika Singh, economic strategist at Fundstrat, said Nvidia almost never misses on revenue, net profit and guidance. However, where the computing power giant "loses points" is that it fails to alleviate investors' concerns that its moat is narrowing, and it does not clearly clarify what kind of response strategy the company will adopt as the computing power landscape continues to evolve and the wave of AI changes that may disrupt various businesses ranging from network security to food delivery to banking.
(Nvidia’s sideways trading has lasted for nearly half a year, source: TradingView)
Michael Burry, the "big short" who continues to bet on technology stocks, also jumped out to "make up for it" and said that Nvidia mentioned in its latest 10-K form that the company's irrevocable purchase commitments reached US$95.2 billion, compared with US$16.1 billion in the same period last year, because TSMC required longer-term contracts and received cash in advance. That number, set to swell further, could pose a risk if demand falters.
Under the influence of Nvidia, other chip companies also fell, with Broadcom falling 3.19% and AMD falling 3.41%.
The stock prices of related companies that had previously benefited from the wave of AI infrastructure construction also fell. ASML, Lam Group and Applied Materials all fell more than 4%, while server supplier Super Micro Computer fell 3.9%. Storage vendors Western Digital and Seagate Technology also fell nearly 3% each.
In contrast, the "AI impact" sectors such as software continued to rise on Thursday after several weeks of continuous decline. Stocks such as Salesforce, IBM, and Visa supported the Dow's slight gain.
Popular stock performance
Ranked by market value, Nvidia fell 5.46%, Apple fell 0.47%, Google-A fell 1.76%, Microsoft rose 0.28%, Amazon fell 1.29%, TSMC fell 2.82%, Meta rose 0.51%, Broadcom fell 3.19%, Tesla fell 2.11%, and Berkshire Hathaway-A rose 1.52%.
Under the dual pressure of the U.S. stock market and the Hang Seng Technology Index, the Nasdaq China Golden Dragon Index closed down 1.78%.
As of the close, Alibaba fell 2.78%, Pinduoduo fell 1.41%, NetEase fell 0.16%, JD.com fell 2.03%, Baidu fell 5.65%, Ctrip fell 2.59%, Li Auto fell 2.98%, Futu Holdings rose 1.05%, Bilibili fell 3.2%, and Weilai fell 1.73%.
Other news
[Google Nano Banana 2 unveiled]
In the early hours of Friday morning Beijing time, the American technology company Google announced the launch of a new generation of image generation model Nano Banana 2 (Gemini 3.1 Flash image model). The company claims that Nano Banana 2 can combine the image generation quality, reasoning capabilities and advanced world knowledge of Nano Banana Pro with the "lightning generation speed" of Flash models.
[Major US technology companies laid off nearly half of their employees due to AI]
As of press time, the U.S. financial technology company Block has soared by more than 20% after hours. Company CEO Jack Dorsey sent a letter to employees on Thursday saying that based on the judgment that AI will change labor productivity, the company has decided to reduce the current total number of employees from more than 10,000 to less than 6,000.
"Smart tools are changing the way companies are built and run, and we're already seeing it internally," Dorsey wrote in the letter. "A significantly smaller team can do more and do it better with the tools we're building."
[MP Materials invests in building the largest rare earth magnet production base in the United States]
MP Materials, the largest rare earth miner in the United States, announced on Thursday that it will build a large-scale rare earth magnet manufacturing park in Northlake, Texas, with a total investment of more than US$1.25 billion. The company estimates that when fully operational, the new factory will bring its total annual production capacity of rare earth magnets to approximately 10,000 tons.
[Netflix withdraws from Warner Bros. acquisition]
Warner Bros. Discovery announced after the market closed on Thursday that its board of directors believed that Paramount Skydance's latest acquisition offer was better than Netflix's. The latter will have four working days to revise its bid or give up the competition and leave with a $2.8 billion termination fee funded by Paramount.
Netflix quickly issued a statement saying that without having to match Paramount's latest offer, the deal was no longer financially attractive and decided not to match the bid. Affected by this news, Netflix rose nearly 10% after the market.
[Meta’s self-developed chip reportedly encounters obstacles]
According to new reports, Meta last week abandoned the most advanced chip it was developing for training AI models due to design difficulties and turned its attention to a less complex version. The company informed employees in its AI infrastructure division of the updated plans last week. This is also the background story behind Meta’s recent large-scale chip contracts with NVIDIA and AMD.
In response, a Meta spokesperson said: "We remain committed to investing in a diversified chip product portfolio to meet our needs, including advancing our MTIA product line; we will disclose more related progress later this year."
[Dell expects AI server revenue to be approximately US$50 billion this fiscal year]
After the market closed on Thursday, AI server maker Dell Technologies rose more than 10% after releasing its earnings report. For the current fiscal year ending in January 2027, it expects AI server revenue to be approximately $50 billion, a 103% year-over-year increase, the company said in a statement on Thursday.
Dell said in a statement that adjusted earnings per share for this fiscal year will be about $12.90 on sales of about $140 billion. Analysts on average expected earnings of $11.56 per share and revenue of $126.3 billion.
[Cook confirmed that Apple will start releasing new products next Monday]
Apple CEO Cook posted on Thursday: "A big week is coming. It all starts on Monday morning!"
This statement is also consistent with previous reports that Apple will release new products for three consecutive days starting next Monday. According to previous reports, after releasing a series of new products through its official website, Apple will hold offline media experience events in three places including Shanghai next Wednesday.
(Shi Zhengcheng of Financial Associated Press)
