A trader works on the trading floor of the New York Stock Exchange on August 28, 2024.
Brendan McDermid | Reuters
Share prices fell on Wednesday, under pressure from a decline in NVIDIAas investors prepared for the chipmaker’s latest earnings report.
The Nasdaq-Composite fell 1.12% to close at 17,556.03, while the S&P500 fell 0.6% to close at 5,592.18. Dow Jones Industrial Average lost 159.08 points or 0.39% and was at 41,091.42.
Wall Street is watching Nvidia to assess the sustainability of the broader technology and artificial intelligence trade. The semiconductor giant — whose report is expected after the market closes — is up more than 150% in 2024, raising questions about how much room the stock has left to run. On Wednesday, Nvidia fell 2.1%, adding to the information technology sector’s 1.3% decline.
Key points for investors include the delivery schedule for Nvidia’s Blackwell chips and an update on AI demand. Art Hogan, chief market strategist at B. Riley Wealth Management, believes Nvidia can deliver another positive surprise to investors.
“The reason you can be confident is because their biggest customers have already reported and talked about how much they’re spending on their chips,” he told CNBC. “All of the hyperscalers talked about massive capital expenditures for the number of (graphics processors) they need to drive their AI strategies.”
Hogan added: “The company has done a pretty good job of exceeding expectations pretty consistently, and we know that all of its biggest customers continue to demand all the products they can get from them.”
Other technology stocks also lost value on Wednesday, including rivals Amazon and Alphabet from the “Magnificent Seven,” which each fell by more than one percent. Microsoft lost 0.8 percent. AI darling Super Micro Computer plunged 19 percent after announcing that it would not be able to submit its annual report for the past fiscal year on time.
