"Nvidia is losing 3% despite soaring revenue coupled with management's strong outlook. The AI trade has reportedly pivoted from the capex boom to a focus on whether that spending pace can be sustained. Leading AI companies have suffered a $1 trillion loss in market cap this month at the worst of the sell-off but have recovered from their worst levels."
"Nvidia's better-than-expected earnings featured EPS of $1.62 per share vs. estimates of $1.50 on revenue of $68.1 billion, far surpassing estimates of $65.9 billion. Bank of America analysts reemphasized their "buy" rating on NVDA stock, lifting the price target by $25 to $300 per share, reflecting upside potential of approximately 60%."
"Morgan Stanley analysts are bullish on AI data cloud stock Snowflake (Nasdaq: SNOW) stock, reiterating an "overweight" rating on the stock. SNOW stock is a bright spot, soaring 7% today and bucking the broader downward trend. Snowflake offered a bullish outlook for its fiscal 2027 product revenue."
Markets opened with cautious sentiment, particularly affecting technology stocks. Nvidia fell 3% despite exceeding earnings expectations with $1.62 EPS versus $1.50 estimates and $68.1 billion revenue versus $65.9 billion forecasts. AMD declined 2.2% despite strong guidance. The AI sector has experienced a $1 trillion market cap loss this month at its worst, though recovered from lowest levels. The market's focus has shifted from AI capital expenditure growth to concerns about sustaining spending pace. Snowflake bucked the downward trend, rising 7% on bullish fiscal 2027 guidance. The Dow Jones rose 0.43%, while Nasdaq Composite and S&P 500 declined 0.55% and 0.30% respectively.
#ai-sector-volatility #technology-stock-earnings #market-sentiment-shift #capital-expenditure-sustainability #stock-market-performance
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