New York, Feb 27, 2026, 16:08 EST — After-hours
- Nvidia shed 3.3% by the close on Friday, deepening its steep slide since earnings.
- AI spending payoffs and intensifying competition stayed top of mind for investors, despite Nvidia lifting its outlook.
- Nvidia isn’t counting on any China data center compute revenue in its forecast for this quarter.
Nvidia stock dropped again on Friday, sliding 3.3% to finish at $178.79. It’s the second day in a row the AI chip giant has lost ground.
Nvidia’s post-earnings swing didn’t just hit its own shares. It turned into a litmus test for how much longer investors are willing to bankroll the AI boom at this clip — and what sort of conditions they’ll demand.
Nvidia’s heavy presence in major indexes has made its moves matter more. When the stock tumbled Thursday, it dragged both the S&P 500 and Nasdaq down, according to analysts and strategists.
Nvidia shares tumbled 5.5% on Thursday, their steepest single-session fall since April, erasing roughly $260 billion in market capitalization, according to Reuters’ Trading Day column.
Investors are pulling back even after Nvidia delivered a blockbuster quarter and issued an upbeat outlook for the top line. The company posted record quarterly revenue of $68.1 billion and said it expects first-quarter revenue to come in at $78.0 billion, give or take 2%.
Nvidia’s CFO, in notes released with the results, made it clear the company’s outlook doesn’t factor in any data center compute revenue from China. Another point: beginning in the first quarter of fiscal 2027, Nvidia plans to start including stock-based compensation expenses in its non-GAAP figures.
Nvidia’s cash pile is swelling, and investors are watching closely to see where it goes next. After earnings, Chief Financial Officer Colette Kress told analysts the company intends to keep pouring money into the AI ecosystem, according to Reuters.
Part of the concern comes down to competition. “Nvidia once again exceeded expectations but the competitive picture is also shifting,” said Jacob Bourne, analyst at eMarketer, noting that customers are starting to branch out to rivals like AMD. Reuters
Major cloud buyers are pouring money into custom chips, too. According to Reuters, hyperscalers such as Meta are projecting capital spending of no less than $630 billion for 2026, targeting data centers and processors as the main recipients.
Technicians flagged something else: Nvidia’s drop knocked it under its 50- and 100-day moving averages, levels traders watch for signs of trend or momentum shifts. That, Reuters pointed out, could trigger further selling.
Bulls have something to watch: AI infrastructure demand could get patchy, or key clients might double down on custom chips and rival accelerators. That would put Nvidia’s growth at the mercy of just a few big spenders. Export controls, too, are in play—Nvidia has left out China data center compute revenue from its forecast for the current quarter.
Next week, investors will be watching for any hint that chip stocks might find their footing following the post-earnings slide, all as Nvidia’s first-quarter sales target hangs over the sector. Nvidia’s calendar shows March 11 is the record date for its quarterly dividend, with checks set to go out April 1.
