Tech & AI
Nvidia chief says new chip orders keep arriving despite tech selloff
Nvidia chief Jensen Huang said fresh chip orders arrive nearly every day, a sign that AI spending may hold up. Tech stocks still lost ground this week.
Quick Read
- Jensen Huang said Nvidia gets new chip orders nearly every day and demand still runs ahead of supply.
- Nvidia shares slid 1.8% on Thursday, and Taiwan Semiconductor Manufacturing fell 1.8%.
- The Nasdaq-100 has fallen 3.1% this week as concern grows over data centers built with borrowed money.
- The durable goods report on Oct. 27 and the Federal Reserve's rate decision on Oct. 28 are the next scheduled checkpoints.
What did Nvidia's chief say?
Nvidia (Nasdaq: NVDA) chief executive Jensen Huang said the company receives new chip orders nearly every day. He added that buyers still want more of its AI chips than Nvidia can currently produce.
Why it matters: His remarks point to steady spending by the large buyers of AI hardware. If those buyers keep ordering, chipmakers and their suppliers could keep benefiting.
How did the shares move?
The comments did not stop the selling on Thursday. Nvidia shares slid 1.8% to $217.23. The company lost $98 billion in market value. Chipmaker Taiwan Semiconductor Manufacturing (NYSE: TSM) also slid 1.8%.
CoreWeave (Nasdaq: CRWV), another stock tied to AI spending, went the other way. Its shares rose 5.9% in regular trading. They then slid 2.3% after the close.
The wider market was mixed. The Nasdaq-100, which is heavy in tech stocks, edged down 0.1% on the day. It has fallen 3.1% so far this week. The S&P 500 rose 0.3%.
What is worrying investors about AI spending?
Concern has been building over data centers financed with borrowed money. If that borrowing becomes harder or costlier, some buyers could slow their chip orders. Huang's remarks offered a more upbeat reading of demand.
A bond's yield is the yearly interest it pays as a share of its price. Yields on government bonds help set long-term borrowing costs, and those costs eased on Thursday. The 10-year Treasury yield fell 9 basis points to 5.10%.
The next broad gauge of business spending is the September durable goods report on Oct. 27. It tracks orders for machinery and other long-lasting equipment. The Federal Reserve then announces its rate decision on Oct. 28 at 2 p.m.
For readers
What it could mean for you: Owners of technology sector funds may feel this story most. Such funds often hold large stakes in chipmakers, so swings in Nvidia and its peers can move them far more than a broad index fund. The technology sector fund fell 0.7% on Thursday. The S&P 500 rose. If big buyers keep ordering AI chips as Huang described, chip stocks could find support. If worries about debt-funded data centers deepen, those funds might stay more volatile than the wider market.
Questions and answers
What did Jensen Huang say about Nvidia chip demand?
Huang said Nvidia receives new chip orders nearly every day. He also said demand for its AI chips is still greater than what the company can produce.
Why did Nvidia stock fall?
Tech stocks have been under pressure this week. Worries are growing about data centers financed with debt. Nvidia shares slid 1.8% on Thursday despite Huang's upbeat comments.
How did CoreWeave stock do?
CoreWeave shares rose 5.9% in regular trading on Thursday. They then slid 2.3% in after-hours trading.
The numbers
| Nvidia (NVDA) price | $217.23 |
|---|---|
| Nvidia (NVDA) change | −1.84% |
| Nvidia (NVDA) market value | $5.2 trillion |
| Taiwan Semiconductor Manufacturing Company (TSM) price | $422.25 |
| Taiwan Semiconductor Manufacturing Company (TSM) change | −1.80% |
| Taiwan Semiconductor Manufacturing Company (TSM) market value | $2.2 trillion |
| CoreWeave (CRWV) price | $69.69 |
| CoreWeave (CRWV) change | +5.94% |
| CoreWeave (CRWV) market value | $38 billion |
| S&P 500 change | +0.33% |
| 10-year Treasury yield | 5.10% |
Thursday’s close
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