TLDRs;
- Nvidia shares slipped as markets looked past Meta deal toward upcoming earnings risk
- Semiconductor stocks weakened broadly, weighing on the AI sector leader
- Investors remain cautious as expectations rise ahead of Nvidia’s results
- Guidance and hyperscaler demand outlook likely to drive next major move
Shares of NVIDIA edged lower on Thursday as investors dialed back enthusiasm following the company’s high-profile partnership with Meta Platforms and turned their attention to Nvidia’s closely watched earnings report next week.
The pullback highlighted how quickly market sentiment can pivot from long-term growth stories to short-term execution risk, especially for stocks at the center of the artificial intelligence boom.
Nvidia stock slipped roughly 0.7% in early afternoon trading, giving back part of the prior session’s gains. Shares traded within a relatively tight intraday range as volumes remained elevated, reflecting active positioning by traders ahead of the company’s February 25 earnings release. While the decline was modest, it stood out because Nvidia continues to serve as the bellwether for AI-linked equities.
AI Bellwether Pauses
The latest move underscored Nvidia’s outsized influence across technology markets. When the stock hesitates, the broader AI trade often follows. On Thursday, weakness in Nvidia coincided with a decline across semiconductor names, pushing the Philadelphia Semiconductor Index lower and adding pressure to the broader market.
Market participants described the pullback as a natural cooling-off period after recent gains. Nvidia had climbed the previous day following confirmation of a multi-year agreement to supply Meta with millions of AI chips. However, with earnings now just days away, investors appeared reluctant to chase the stock higher.
Meta Deal Sets Context
The Meta partnership remains strategically significant for Nvidia, even if it no longer dominates the daily trading narrative. Under the agreement, Nvidia will provide not only GPUs but also CPUs and networking hardware, reinforcing its role as a full-stack supplier for hyperscale AI infrastructure.
According to Nvidia, the deal includes large volumes of its Blackwell and Rubin GPUs, which power advanced AI model training and inference. Meta has indicated plans to expand its AI clusters using Nvidia’s latest platforms, underscoring the scale at which demand continues to grow.
Still, Wall Street tends to reward confirmed numbers over future potential. With the Meta deal now largely priced in, attention has shifted back to what Nvidia’s upcoming results and guidance will reveal about near-term momentum.
Semiconductors Under Pressure
Thursday’s decline was not isolated to Nvidia. Chip stocks broadly retreated as investors reassessed valuations across the sector. After a strong multi-month rally fueled by AI optimism, semiconductors have become more sensitive to any hint of slowing demand or margin pressure.
Some analysts described the sector’s weakness as an overreaction, noting that long-term fundamentals remain intact. Others pointed out that with megacap technology stocks still trading near record levels, even small disappointments could trigger sharper moves.
Earnings Expectations High
The biggest variable now is Nvidia’s earnings call scheduled for February 25. The company will report fourth-quarter and full fiscal-year 2026 results, followed by commentary from management on demand trends, product rollout timing, and customer spending plans.
Expectations are elevated. Investors will be listening closely for updates on Blackwell production, the pace of Rubin adoption, and whether hyperscale customers like Meta continue to accelerate AI infrastructure investments. Any sign of delays, capacity constraints, or budget tightening could weigh on the stock.
At the same time, Nvidia has a history of strong execution, and bullish investors argue that demand visibility remains solid. For now, however, the market appears content to wait.
As Nvidia approaches its earnings date, the stock’s recent dip reflects not a loss of confidence, but heightened caution. With so much riding on guidance and forward commentary, investors are choosing patience over momentum, at least until the numbers are in.
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