Nvidia Corporation (NVDA) closed Friday's trading session down 1.45% at $211.14, bucking a broader rally that propelled major Wall Street indexes to fresh all-time highs. The stock recovered slightly in after-hours trading, gaining 0.72% to $212.65, according to data from Google Finance.
The Nasdaq Composite edged up 0.21% to close at 26,972.62, while both the S&P 500 and the Dow Jones Industrial Average also finished at record levels, buoyed by sustained enthusiasm for artificial intelligence-related equities. Nvidia, widely regarded as the primary public-market proxy for AI infrastructure—encompassing chips, networking gear, and software for training and running large-scale AI models—failed to participate in the day's gains.
Market participants are now turning their attention to Computex, the major technology trade show set to take place in Taipei, Taiwan, from June 2 to June 5. Nvidia's CEO Jensen Huang is scheduled to deliver the keynote address on Monday, June 2. Investors are eager for updates on the company's data-center portfolio, the Vera Rubin AI platform, and potential moves into the central processing unit (CPU) market. During his visit to Taiwan, Huang has already met with executives from Taiwan Semiconductor Manufacturing Company (TSM), Foxconn, and Quanta Computer, according to Reuters.
Nvidia's recent quarterly results remain a focal point. The company reported first-quarter revenue of $81.6 billion, an 85% year-over-year surge, driven by robust demand from AI customers. Data-center revenue alone jumped 92% to $75.2 billion. The board also authorized a new $80 billion share buyback program. CEO Jensen Huang characterized the company's AI factories as 'accelerating at extraordinary speed,' while CFO Colette Kress told analysts that the quarter saw 'revenue, operating income, and free cash flow exceeding our prior records.' Kress also highlighted the rollout of the Blackwell chip system among cloud providers, model developers, and government buyers.
Despite Nvidia's underperformance, other AI-related names fared better. Dell Technologies (DELL) surged 32.8% after raising its full-year guidance, with AI server revenue reaching $16.1 billion—surpassing the company's $14.6 billion in PC sales for the quarter. Broadcom (AVGO) rose 4.81% to $446.77, while Advanced Micro Devices (AMD) slipped 0.38% to $516.10. The mixed moves suggest investors remain selective within the semiconductor space.
Analysts remain bullish on the AI theme but caution about elevated expectations. 'There's definitely euphoric sentiment in the market around AI,' said Ohsung Kwon, chief equity strategist at Wells Fargo. 'The rally has really been driven by earnings.' However, he noted that sustaining the momentum depends on whether AI spending continues to translate into profits. Ryan Fletcher, a partner at McKinsey & Company, observed that 'Taiwan's AI role is moving from a semiconductor story to an infrastructure story,' underscoring Nvidia's need for power, cooling, networking, and server supply chains beyond chips.
Geopolitical risks also loom. Nvidia has stated that its second-quarter outlook does not include any data-center compute revenue from China. With China reportedly escalating military activities near Taiwan, any disruption to supply chains or further restrictions on sales to China could pressure Nvidia's valuation. The stock currently trades at a premium multiple, supported by strong earnings but vulnerable to any signs of demand softening or geopolitical shocks.
As Computex approaches, Nvidia's shares are caught between the tailwinds of AI infrastructure spending and the headwinds of high expectations and geopolitical uncertainty. The company's next major product announcements and Huang's commentary could either provide a catalyst for renewed upside or amplify existing doubts.
