Nvidia slips ~1.5% as Intel, AMD and Broadcom rise

Nvidia shares fell about 1.5% to roughly $227 on Tuesday after three consecutive sessions of gains, while Intel, AMD and Broadcom moved higher and the PHLX Semiconductor Sector index climbed as oil prices rose and tensions between the U.S. and Iran increased.

The broader market declined on the session. The Dow Jones Industrial Average dropped 574 points, or 1.1%, the S&P 500 fell 0.4% and the Nasdaq slipped 0.3%. U.S. markets were closed on Monday for the Labor Day holiday.

Intel jumped more than 8% after Northland Capital Markets upgraded the stock to Outperform from Market Perform. AMD gained about 5% and Broadcom rose roughly 3%, leaving the PHLX Semiconductor Sector up around 2% while Nvidia paused.

West Texas Intermediate crude futures extended a six-session winning streak, the longest run since March, and Brent crude traded near $98 a barrel as diplomatic tensions escalated over the weekend. Traders cited the crude rally and the geopolitical backdrop as factors in the pullback across major indexes.

Nvidia has gained about 24% over the past six months and was trading just below its record high of $236.54. Over the same period, both AMD and Intel have more than doubled. Market participants are assessing whether demand tied to artificial intelligence will support the company’s revenue projections and current valuations.

Several brokerages maintained positive views on Nvidia even as the stock eased. Cantor Fitzgerald reiterated an Overweight rating and a $350 price target, pointing to ongoing demand for AI infrastructure and noting supply constraints in the semiconductor industry. The firm also highlighted Nvidia’s position as a major customer of TSMC and said the stock appears inexpensive versus compute-focused companies on a calendar 2028 earnings basis. Morningstar raised its fair value estimate for Nvidia to $310 from $280.

Nvidia reported fiscal second-quarter revenue of $96 billion, up 106% from a year earlier and above its $91 billion guidance. The company forecast October-quarter revenue of $108 billion, higher than the FactSet consensus near $105 billion. Management projects roughly 70% revenue growth for fiscal 2028, implying nearly $700 billion in revenue versus outside estimates around $570 billion.

Cantor analyst C.J. Muse described changes to high-bandwidth memory specifications as an economic decision intended to optimize gross margins and GPU unit economics amid a finite supply of memory bits. Some analysts remain divided on the durability of the AI spending cycle given macroeconomic and debt concerns.

The session illustrated a short-term divergence within the semiconductor sector: several large chipmakers advanced while Nvidia pulled back amid broader macroeconomic and geopolitical pressures.