Feb 26 (Reuters) – Nvidia’s shares fell on Thursday as the AI bellwether’s upbeat results failed to lift sentiment for investors increasingly concerned about the returns from massive spending on artificial intelligence.
Its shares slid 4.8% to $186.28 in morning trading, weighing on the main U.S. indexes. The stock closed at a three-month high on Wednesday.
The world’s most valuable company said it expects fiscal first-quarter sales of $78 billion, plus or minus 2%, compared with analysts’ average estimate of $72.60 billion, according to data compiled by LSEG.
The stock reaction reflects growing focus on whether Nvidia’s record setting momentum can hold as rivals push new AI accelerators, hyperscalers invest in custom silicon and the broader AI spending cycle becomes more uneven.
“The stock response suggests investors were left wanting more, which we think is tied to continued uncertainty around the growth trajectory for NVDA’s data Center business in CY27, given massively expanded capex budgets for key customers,” J.P. Morgan analysts said in a note.
(Reporting by Rashika Singh and Kanishka Ajmera in Bengaluru, Danilo Masoni in Milan; Editing by Elaine Hardcastle and Arun Koyyur)
