Nvidia Corp (NASDAQ:NVDA), the world’s most valuable chipmaker, saw its shares dip 3.4% to $140.88 in premarket trading on Thursday after issuing a forecast that fell short of some investors’ lofty expectations.
The company projected its slowest revenue growth in seven quarters, citing supply chain constraints that are expected to persist well into fiscal 2026.
The company forecasts Q4 revenue to be $37.5 billion, plus or minus 2%, slightly above the Refinitiv LSEG estimate of $37.09 billion.
For Q3, Nvidia reported adjusted earnings per share of 81 cents, surpassing analysts' expectations of 75 cents.
However, concerns about the firm’s ability to meet the overwhelming demand for its AI-focused chips tempered investor enthusiasm.
J.P. Morgan and Bernstein raised their price targets for Nvidia to $170 and $175, respectively, up from $155, pointing to robust demand and the ongoing ramp-up in production for the Blackwell chip.
Despite these reassurances, the broader U.S. chip sector saw declines in premarket trading, with shares of Advanced Micro Devices (NASDAQ:AMD), Intel (NASDAQ:INTC), Qualcomm (NASDAQ:QCOM), and Micron Technology (NASDAQ:MU) falling between 0.7% and 1.2%.
Nvidia’s stock, which has surged 194.6% year-to-date as of its last close, remains a beacon of growth in the semiconductor industry.