Stocks slip premarket after Nvidia earnings rally

Nvidia, AMD and Intel shares slipped in Friday premarket trading as investors sold shares after Nvidia’s strong earnings reaction less than 24 hours earlier. Nvidia and AMD dropped about 1.5% while Intel fell more than 2%.

Nvidia reported fiscal second-quarter revenue of $96.22 billion, provided guidance of roughly $108 billion for the current quarter and forecasted 70% revenue growth in fiscal 2028. The stock jumped 8.7% on Thursday, adding roughly $442 billion to Nvidia’s market value and helping lift the Philadelphia Semiconductor Index about 2.3%.

Traders cited profit-taking and crowded positioning as immediate drivers of the premarket pullback. Market participants said the rapid price rise after Nvidia’s results raised expectations and prompted some investors to reduce exposure overnight.

Marvell Technology’s shares fell more than 8% premarket despite beating quarterly revenue and adjusted earnings forecasts and raising longer-term revenue targets. Jay Hatfield, chief executive of Infrastructure Capital Advisors, noted that investors had expected fiscal 2029 guidance from Marvell and that the company’s decision to delay that outlook until an October investor event contributed to the negative reaction.

Bank of America analyst Vivek Arya wrote that “semiconductor demand remains solid, yet three headwinds could cap chip stocks near-term,” identifying higher interest rates, concerns around circular AI financing, and heavy investor positioning. BofA estimates the sector is roughly 13% overweight relative to the S&P 500 and sees about 10% downside risk for the Philadelphia Semiconductor Index; Arya added he remains constructive, writing “the setup is compelling.”

Macroeconomic factors also influenced trading. Federal Reserve Chair Kevin Warsh was scheduled to speak at the Jackson Hole symposium on Friday. The 10-year Treasury yield was near 4.68%, and futures prices implied about a 35% chance of a September rate increase with markets pricing a hike by December. Rising yields reduce the present value of future earnings, a factor that affects high-growth technology stocks.

Bruno Schneller, managing partner at Erlen Capital Management, described Jackson Hole as the focal point for global markets and said investors want clearer signals on the Fed’s reaction function. Traders said that uncertainty around the speech gave them reason to trim semiconductor exposure after Thursday’s gains.

Nvidia’s results confirmed strong AI infrastructure demand and the size of the rally raised the hurdle for further immediate gains. AMD and Intel face similar market sensitivity because their valuations increasingly depend on continued data-center spending. Marvell’s reaction did not indicate weakening AI budgets but illustrated a narrower margin for investor disappointment when expectations are high.