(Reuters) — Stock futures in the US saw a decline as Nvidia Corp. issued a revenue forecast that fell short of expectations, raising concerns about the sustainability of the artificial intelligence boom.
Futures on the Nasdaq 100 Index dropped 0.6% while contracts on the S&P 500 Index fell 0.3%, with semiconductor-related stocks weighing down a key Asian equity benchmark.
Despite a recent recovery, the Nasdaq 100 remains below its record high as investors assess whether the rally in AI stocks has outpaced actual profits. Expectations of interest rate cuts have led to a rotation out of tech and into other sectors.
Nvidia’s shares fell over 8% in after-hours trading, with production issues related to its new Blackwell chips also impacting sentiment.
While some may be disappointed by Nvidia’s results, analysts believe this is just short-term noise given the company’s underlying strength. Declines in US stocks prior to Nvidia’s report indicate investor caution, but futures recovering from intraday lows suggests optimism for the chipmaker’s future.
Nvidia’s management expects the Blackwell chip to generate “several billion dollars” in revenue in the fourth quarter, easing concerns raised by some analysts. However, formal guidance for the January quarter may be needed to fully dispel doubts.
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