Nvidia, AMD, Intel stocks slide premarket: why investors are suddenly taking profits

Nvidia, AMD and Intel stocks fell in Friday premarket trading as investors took money off the table less than 24 hours after Nvidia’s blockbuster earnings sparked a semiconductor rally.

Nvidia and AMD were down about 1.5%, while Intel slipped more than 2%.

The reversal followed an 8.7% jump in Nvidia on Thursday, when its forecast for 70% revenue growth in fiscal 2028 helped lift the Philadelphia Semiconductor Index 2.3%.

The pressure reflects profit-taking, crowded positioning and a market unwilling to reward merely good results.

Thursday’s surge left traders with profits to protect

Nvidia’s post-earnings gain was its strongest reaction to results in more than two years and added roughly $442 billion to its market value.

Its fiscal second-quarter revenue reached $96.22 billion, while management guided to $108 billion for the current quarter and signalled that AI infrastructure spending could remain strong.

Bank of America analyst Vivek Arya has warned that semiconductor fundamentals do not eliminate short-term risks.

“Semiconductor demand remains solid, yet three headwinds could cap chip stocks near-term,” Arya wrote this week.

He pointed to higher rates, concerns around circular AI financing, and heavy investor positioning.

BofA estimates chip stocks are around 13% overweight relative to the S&P 500 and sees 10% downside risk for the SOX index.

Arya nevertheless remains constructive, saying “the setup is compelling.”

Marvell shows how difficult the AI earnings bar has become

Marvell Technology provided a fresh warning about expectations.

Its shares fell more than 8% premarket despite quarterly revenue and adjusted earnings slightly exceeding forecasts and management raising longer-term revenue targets.

Infrastructure Capital Advisors CEO Jay Hatfield told The Wall Street Journal that investors had hoped Marvell would provide fiscal 2029 guidance, but management delayed that outlook until its October investor event.

That reaction illustrates how demanding AI valuations have become.

Companies can beat estimates and raise forecasts yet still disappoint if investors were positioned for something bigger.

That is relevant to Nvidia after Thursday’s rally. Its results confirmed powerful AI demand, but the stock’s jump also raised the hurdle for additional upside.

AMD and Intel face the same sentiment risk because their valuations increasingly depend on continuing data-centre investment.

Marvell did not prove that AI spending is weakening, but showed the margin for disappointment is shrinking.

Jackson Hole gives investors another reason to cut risk

Friday also brings a macro event capable of moving valuations across technology stocks.

Federal Reserve Chair Kevin Warsh is due to speak at Jackson Hole as investors seek clarity on inflation and the future path of interest rates.

The 10-year Treasury yield was around 4.68%, while futures implied about a 35% probability of a September rate increase and fully priced a hike by December.

Higher yields matter for growth stocks because they reduce the present value assigned to future earnings.

“Jackson Hole is the focal point for global markets,” Erlen Capital Management managing partner Bruno Schneller told Reuters, adding that investors want clarity on the Fed’s reaction function rather than another hawkish or dovish signal.

That gives traders a reason to reduce semiconductor exposure after Thursday’s windfall instead of carrying maximum risk into Warsh’s speech.