- Major semiconductor stocks fell in pre-market trading after Nvidia's strong quarterly results.
- Nvidia shares rose 8.74% Thursday but declined 0.54% in Friday pre-market trade.
- AMD, Micron, Intel, and SK Hynix shares also dropped in early Friday trading.
Major semiconductor stocks came under pressure in pre-market trading on Friday, a day after Nvidia's blockbuster quarterly results sparked a sharp rally in the chipmaker's shares. The weakness comes after a mixed session for semiconductor stocks on Thursday, when Nvidia emerged as the clear standout following its strong fiscal second-quarter results.
Advanced Micro Devices (AMD) shares fell 0.9% to $472.27, Micron Technology declined 1.86% to $918.03, Intel slipped 1.97% to $90.27 and SK Hynix ADR dropped 2.02% to $158.34 in pre-market trade. Nvidia shares also fell 0.54% to $226.75.
This comes after Nvidia shares surged 7.19%, or $15.07, to $224.73 in early US trading on Thursday before ending the session 8.74% higher at $227.98. However, the gains failed to trigger a broad-based rally across the semiconductor space.
AMD ended Thursday's session 0.89% lower, while Micron declined 0.32%. SK Hynix ADR fell 2.27%. Intel was an exception, gaining 4.36% by the close. The mixed performance suggests that investors are increasingly distinguishing between Nvidia's exceptional AI-driven growth story and the outlook for the wider semiconductor industry.
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Friday's pre-market declines could indicate some profit booking following the sharp moves seen across parts of the chip trade, although the broader semiconductor sector has also displayed a see-saw pattern in recent months.
Nvidia Earnings Boost AI Sentiment
Nvidia's sharp rally followed its fiscal second-quarter FY27 results, which showed revenue more than doubling from the year-ago period. The strong numbers reinforced expectations that spending on artificial intelligence infrastructure and data centres remains robust. Nvidia's outlook also provided investors with confidence that demand for its AI chips could remain strong.
The company has projected 70% revenue growth for fiscal 2028, further strengthening the long-term AI investment narrative. Nvidia's results have once again put the company at the centre of the global AI trade. However, the reaction across other semiconductor stocks suggests that investors are not automatically extrapolating Nvidia's growth to every chipmaker.
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