Key Takeaways
- NVDA traded at $193.35 in premarket Friday, declining ~1.2% and heading toward an 8%+ weekly drop
- Shares fell through the $200 support level amid rising doubts about artificial intelligence infrastructure investment
- One analyst notes speculative capital has moved from Nvidia to memory chip manufacturers including Micron and Sandisk
- CFO Colette Kress forecasts AI infrastructure expenditure reaching $3–$4 trillion per year by 2030
- Trading at a forward P/E near 23.8, Wall Street expects revenue to expand at a 45.6% CAGR until fiscal 2029
Shares of Nvidia (NVDA) were changing hands at $193.35 during Friday’s premarket session, slipping 1.2% and positioned for a weekly decline exceeding 8%. This represents the chipmaker’s most severe weekly downturn since April 2025.
The semiconductor giant appeared to establish support near the $200 threshold following its earlier recovery this year. However, that technical level crumbled Thursday when fresh anxiety surrounding artificial intelligence capital expenditure sparked widespread selling throughout the technology sector.
Nasdaq 100 futures were trading 1.2% lower Friday morning, maintaining downward momentum across tech-heavy indices.
The downturn isn’t isolated to Nvidia alone. Memory chip stocks are experiencing significant pressure as well, with Micron (MU) retreating 5.6% and Sandisk (SNDK) falling 5.7% in early trading.
Richard Reyle, who serves as chief investment officer at Questar Capital Partners, highlighted a sector rotation 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 featured Nvidia as a recommended pick on May 13, when shares traded at $226. The stock has tumbled 13% following that recommendation.
Executive Commentary on Growth Trajectory
Despite the recent weakness, the fundamental investment thesis for Nvidia remains largely unchanged. During the Q1 fiscal 2027 earnings discussion, CFO Colette Kress informed shareholders that artificial intelligence infrastructure investment is projected to climb to $3 to $4 trillion annually before decade’s end.
To put this in perspective, Goldman Sachs projects current calendar year spending at $765 billion. Reaching the middle of Kress’s forecast — approximately $3.5 trillion by 2029 — would constitute 358% expansion over three years.
Nvidia maintains a dominant market position in data center graphics processing units. Demand for its Blackwell chip architecture remains robust, while its upcoming Vera Rubin platform, engineered specifically for agentic AI applications, is scheduled to launch in Q3.
This represents a substantial product roadmap for an enterprise already commanding a $4.7 trillion market capitalization.
Financial Metrics and Street Projections
With a forward price-to-earnings ratio hovering around 23.8, NVDA is trading at more attractive multiples compared to various periods throughout the previous two years. Whether this constitutes a strategic entry point or a value trap hinges on one’s perspective regarding AI spending sustainability.
Wall Street analysts maintain a predominantly optimistic stance. Consensus forecasts project revenue expanding at a 45.6% compound annual growth rate from fiscal 2026 through fiscal 2029. Adjusted earnings per share are anticipated to advance at approximately 49% yearly throughout the identical timeframe.
NVDA has appreciated 6.7% year-to-date and has surged 944% across the past five-year period.
The stock’s 52-week trading range spans $151.49 to $236.54. Current pricing sits within the lower portion of that corridor.
