Nvidia Stock Falls in Pre-Market Trading
Nvidia’s stock price declined in pre-market trading on Friday. Shares of the chipmaker (NVDA) fell more than 1%. The stock traded around the $178 mark. This dip is part of a broader market pullback. Investors are feeling cautious ahead of a key inflation report.
Wall Street Analysts Signal Confidence
The pre-market drop comes despite bullish analyst updates. Several investment firms raised their price targets for Nvidia Friday. Citic increased its target to $202. Rothschild & Co raised its target to $211. The average analyst price target now sits near $203. This suggests a potential 12% upside from Thursday’s close. Wall Street clearly remains confident in Nvidia’s long-term AI prospects.
Why Is Nvidia’s Stock Price Down Today?
Nvidia’s decline is tied to wider market sentiment. Stock futures for all major indexes are down. Investors are awaiting the July Personal Consumption Expenditures (PCE) index. This is a critical inflation reading for the Federal Reserve. Also, a weak forecast from peer chipmaker Marvell has created some worry. Marvell’s news has put pressure on the entire semiconductor sector this morning.
New AI Chip Competition Emerges
New reports also point to growing competition in China. The Wall Street Journal said Alibaba is developing a new AI chip. This move aims to fill the void left by U.S. export restrictions on Nvidia’s products. It highlights a potential long-term challenge for Nvidia’s business in the region. Investors will watch these competitive developments closely.