Nvidia shares fell 2% on Wednesday, a second straight session of losses days after the chipmaker touched a 52-week high, even as it reported record quarterly revenue and authorized a fresh $150 billion buyback. The pullback came the same day the Financial Times reported that OpenAI's revenue growth is trailing earlier estimates, a figure widely watched as an indicator of overall AI demand.
Nvidia shares fell 2% on Wednesday, extending a slide that began the previous session. The stock touched $243.37 on October 6. It then traded as low as $233.72 before settling between $235 and $236 by Wednesday afternoon.
Two red sessions after a run to the top
NVDA closed October 7 at $237.47, down 0.74%. Shares opened lower the next morning and kept sliding, with the intraday decline reaching nearly 2% before paring losses later in the session. Even so, Nvidia remains up roughly 25% to 28% for the year. It also sits well above its March 2026 low near $164. At current levels, the company is worth approximately $5.7 trillion, so even a small percentage move shifts a large amount of paper wealth.
Earnings and buyback hold up
The pullback follows a strong quarter, not a weak one. Nvidia reported fiscal Q2 2027 revenue of $96.22 billion, up 106% year-over-year, driven mostly by data center sales. On September 28, the company authorized an additional $150 billion share repurchase program. Its forward price-to-earnings ratio sits at roughly 16 to 17 times, which the source describes as historically low for the stock. CEO Jensen Huang has said AI demand is persisting and accelerating.
Wall Street still favors the chipmakers
Morgan Stanley reinstated Nvidia as its top semiconductor pick on October 6, pointing to strong data center demand. The move came as the Philadelphia Stock Exchange Semiconductor Index climbed 84% year-to-date, lifted by Micron, Marvell, Intel and Advanced Micro Devices alongside Nvidia. But an 84% gain raises the stakes: AI infrastructure demand needs to keep holding up, or a slowdown would likely be felt across the whole group rather than one stock.
That demand picture got murkier this week. OpenAI's annualised revenue is about $20 billion less than previously signaled, with the company telling investors it was approaching $50 billion rather than the $70 billion reported last month by the FT and other outlets. The Financial Times describes the figure as the most important indicator of overall AI demand, underpinning both infrastructure spending and the valuation of public equity markets.
Sources: Crypto Briefing, Financial Times, Crypto Briefing
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