New York, May 17, 2026, 09:01 EDT
- Nvidia closed at $225.32 on Friday, losing 4.42%. Still, the stock rose about 4.7% over the week, lifted by an AI-driven surge.
- NVIDIA will post fiscal Q1 results Wednesday, May 20, at 2 p.m. PT, putting the AI trade in focus.
- Nasdaq slipped 1.54% Friday while the Philadelphia semiconductor index dropped 4%. AMD and Intel shares were down too.
Nvidia stock is set to face the weekend with the market closed and investors waiting on quarterly earnings. The report is seen as the biggest scheduled hurdle so far for a rally that has put artificial intelligence in focus again for U.S. equities.
Nvidia (NVDA.O) shares ended Friday at $225.32, dropping 4.42% for the day after hitting $236.54 earlier this week. Still, the stock added about 4.7% for the week from last Friday’s $215.20 close.
Nvidia’s results are under the microscope because the company isn’t just another chip stock. Reuters called Nvidia the world’s largest by market cap, and said its numbers are seen as a signal for how much the big cloud companies—hyperscalers—are willing to keep spending on AI data centers.
Stocks took a hit Friday as selling picked up late week. The S&P 500 slid 1.24% and the Nasdaq Composite dropped 1.54%. Rising crude and bond yields weighed on shares. Higher bond yields can pressure pricier stocks as investors look for better returns elsewhere.
Semiconductor stocks slid. The Philadelphia SE Semiconductor Index lost 4%. AMD was down 5.7%, Intel slid 6.2%. Nvidia dropped 4.4%, Reuters reported, cutting into gains made through Thursday.
Nvidia finished up 4.4% Thursday, following a Reuters report saying the U.S. approved sales of its H200 chips to buyers in China. The H200 is a high-end chip built for AI. The rally came after a wave of China optimism.
Mixed signals are coming out of China on the H200 chip. Reuters said about 10 Chinese companies got U.S. approval to buy the Nvidia H200, naming Alibaba, Tencent, ByteDance and JD.com, but said none of them have received shipments yet. A source told Reuters that Chinese companies stepped back after getting guidance from Beijing.
AI stocks and energy prices will get tested this week, according to analysts and investors. Allen Bond, portfolio manager at Jensen Investment Management, told Reuters that AI and energy have been trading on “almost parallel tracks,” and he said daily headlines “can really drive the market.” Reuters
Rally has been thin, too. Patrick Ryan, chief investment strategist at Madison Investments, told Reuters a “smaller set of names” are driving index returns. That’s a worry, he said, since much of the market’s move is riding on just a handful of big tech stocks. Reuters
Nvidia’s report on Wednesday is as much about what comes next as it is about last quarter’s numbers. Investors are focused on whether demand for AI chips and data-center gear stays high and if anyone is catching up. “The question is whether Nvidia can ‘defend its leadership position,’” said Yung-Yu Ma, chief investment strategist at PNC Financial Services Group. Reuters
The risk to the downside is pretty straightforward. If Nvidia’s outlook misses, or cloud buyers start to slow capex, or if China business doesn’t pick up even with U.S. approvals, investors could start rethinking what they’re willing to pay up for AI stocks. Higher rates would make it even tougher. Kenny Polcari, chief market strategist at Slatestone Wealth, told Reuters the market had been swept up in a “momentum AI trade.” Reuters
Nvidia still holds big gains after its late-March low, and chips have rallied hard. Traders are watching Wednesday’s numbers to see if Friday’s drop was just a break or the first sign of a shakier phase.
