Key Takeaways
- NVDA trades around $193.35 in Friday’s premarket session, down approximately 1.2% and heading toward an 8%+ weekly decline
- Shares have slipped beneath the critical $200 support level amid growing worries about artificial intelligence capital expenditures
- Market observers note capital has migrated from Nvidia toward memory chip manufacturers including Micron and Sandisk
- Company CFO Colette Kress forecasts AI infrastructure investments will reach $3–$4 trillion per year before 2030
- Trading at a forward P/E near 23.8, Wall Street expects revenue to expand at 45.6% annually through fiscal 2029
Shares of Nvidia (NVDA) were changing hands at $193.35 during Friday’s premarket hours, reflecting a 1.2% daily decline and positioning the stock for a weekly drop exceeding 8%. This represents the company’s steepest weekly retreat since April 2025.
The chip giant appeared to establish support near the $200 price point following its rebound earlier in 2025. However, that technical floor crumbled Thursday as fresh anxiety surrounding artificial intelligence capital deployment sparked widespread selling throughout the technology sector.
Nasdaq 100 futures were trading 1.2% lower Friday morning, maintaining downward momentum.
The semiconductor giant isn’t experiencing this pressure in isolation. Memory chip manufacturers are also feeling the heat, with Micron (MU) declining 5.6% and Sandisk (SNDK) dropping 5.7% during premarket activity.
Richard Reyle, who serves as chief investment officer at Questar Capital Partners, highlighted a notable sector rotation. “The same hot money that chased Nvidia over the past few years has now discovered the memory stocks,” he explained. “We would not be buying big tech stocks or AI stocks at current levels, as their dominance is starting to erode.”
Barron’s selected Nvidia as a featured pick on May 13, when shares were priced at $226. The stock has surrendered 13% since that recommendation.
Executive Guidance Remains Optimistic
Despite the recent weakness, the fundamental investment thesis for Nvidia remains largely intact. During the Q1 fiscal 2027 earnings conference call, CFO Colette Kress informed investors that artificial intelligence infrastructure expenditures are projected to climb to $3 to $4 trillion annually before the decade concludes.
To put this in perspective, Goldman Sachs projects spending will total $765 billion during the current calendar year. Achieving the center point of Kress’s forecast — $3.5 trillion by 2029 — would represent a remarkable 358% expansion over three years.
Nvidia maintains a commanding market position in data center graphics processing units. Its Blackwell architecture continues experiencing robust demand, while its upcoming Vera Rubin platform, engineered for agentic AI applications, is scheduled to commence shipments during Q3.
That’s an impressive product roadmap for an enterprise already commanding a $4.7 trillion market capitalization.
Price Metrics and Street Consensus
With a forward P/E ratio hovering around 23.8, NVDA is trading at more attractive multiples than many periods throughout the previous two years. Whether this represents a strategic entry point or a value trap hinges on individual perspectives regarding sustained AI spending momentum.
Wall Street analysts maintain a predominantly optimistic stance. The consensus forecast anticipates revenue expanding at a 45.6% compound annual growth rate spanning fiscal 2026 through fiscal 2029. Adjusted earnings per share are projected to grow at approximately 49% yearly during the identical timeframe.
NVDA has advanced 6.7% year-to-date and has surged 944% throughout the past five years.
The equity’s 52-week trading range spans from $151.49 to $236.54. Current pricing sits within the lower portion of that spectrum.
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