TLDR Nvidia stock declined in Thursday premarket trading as investors sold semiconductor shares following the US midterm elections. Micron and the SOXX semiconductor fund also declined, while
Nvidia (NVDA) stock weakened in Thursday’s early trading as investors sold shares in companies tied to artificial intelligence. The chipmaker slipped about 0.93% before the opening bell on November 5, following Tuesday’s US midterm elections. Nvidia supplies processors used in data centers that train and run artificial intelligence models.
The decline came despite a steadier broader market. S&P 500 futures gained 0.06%, while the Nasdaq-linked QQQ fund lost 0.49%, pointing to pressure on technology shares.
Micron Technology fell around 3% before the bell after losing nearly 7% on Wednesday. The SOXX semiconductor exchange-traded fund also dropped almost 3% in premarket dealings, extending Wednesday’s decline of roughly 3%.
Analyst Dan Ives warned that semiconductor shares could fall another 10% to 12%. Fundstrat’s Tom Lee offered a different view, describing the AI selloff as an “overreaction” and projecting a possible 20% tech rebound if hedge funds returned before year-end.
Concern about future computing sites has spread to smaller operators. CoreWeave lost 10.08% on Wednesday, as reported by Blockonomi, amid fears that election results could bring tighter rules for new data centers.
Cramer raised concerns about electricity prices and water use at these facilities. He said CoreWeave, IREN and Nebius may face greater restrictions than Amazon, which has more options when selecting project sites.
He also said investors were reconsidering their preferred technology shares. “Tech’s trying to make a stand here. It’s just not the tech that’s led us for the last few years,” Cramer said. Marvell’s proposed $115 billion Lumentum acquisition drew scrutiny amid the same broader selloff.
At $199.40, Nvidia stood below its 20-day average of $216.12 and 50-day average of $221.20. Those averages track recent prices and place the current quote below both widely followed market reference levels.
Its 20-day average had also fallen beneath the 50-day level. Nvidia traded below its 200-day average of $204.67, another price measure that investors follow for longer-term trends.
Nvidia will publish third-quarter fiscal 2027 results on November 17. Analysts expect revenue of $109.17 billion and earnings of $2.48 per share. Elsewhere, Coherent shares fell despite stronger quarterly results, reflecting mixed investor responses to AI-linked earnings.
Across 50 analysts, Nvidia held a Buy consensus with an average target of $341.04. Estimates ranged from $282 to $515. Melius Research cut its target to $315, while Needham kept $300 and Cantor Fitzgerald maintained $350.
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