New York, May 27, 2026, 07:05 EDT
Nvidia stock slipped ahead of the U.S. open Wednesday, with traders sizing up Jensen Huang’s latest Taiwan supply-chain push while most AI-related names inched higher. Shares were at $214.86, about 0.3% under Tuesday’s close. The chipmaker’s market cap stood at roughly $5.24 trillion.
Stock futures in the U.S. moved higher early Wednesday, following record finishes for the S&P 500 and Nasdaq. Traders kept buying on renewed AI hopes, even as worries over the Middle East and rising bond yields lingered. Nasdaq 100 futures traded up 0.45% as of 4:42 a.m. ET, Reuters said.
Nvidia is planning to lift annual spending in Taiwan to about $150 billion from roughly $100 billion, CEO Jensen Huang said in Taipei, calling the island “the epicentre of the AI revolution.” The company’s new Taiwan headquarters is set to start construction this year, with a targeted opening in 2030 and an expected 4,000 staff, according to Reuters. Reuters
Nvidia investors are watching Taiwan closely. It’s where the chips are made. Taiwan Semiconductor Manufacturing Co does most of the high-end silicon that goes in AI servers. Foxconn, Wistron and Quanta build out the server systems cloud firms buy.
Nvidia’s latest update follows last week’s earnings, when it said first-quarter revenue came in at $81.6 billion, up 85% from the year before. Data Center revenue was $75.2 billion. Data centers, where AI models are trained and run, drove results. Looking ahead, Nvidia put second-quarter revenue guidance at $91 billion, give or take 2%, and the board signed off on an extra $80 billion in stock buybacks.
Nvidia said its forecast does not include any Data Center compute revenue from China. The company is still watching for shifts in export rules, which are still a key issue. Compute covers the processing power that runs AI systems.
Investors are still questioning how long this sharp growth trend can last. “Nvidia delivered another beat,” eMarketer analyst Jacob Bourne told Reuters last week. But he said the key issue is “whether it can convince investors the AI buildout has durability into 2027 and 2028.” Reuters
Morningstar analyst Brian Colello bumped his fair value estimate on Nvidia up to $280 from $260 following the earnings release, with Colello noting “no slowdown” in demand for Nvidia’s AI products. Data Center sales to hyperscale customers, mainly the large cloud players, totaled $37.9 billion, making up half of all Data Center revenue, according to Morningstar. Morningstar
Nvidia’s rally is lifting suppliers and other chip stocks. Micron briefly crossed $1 trillion in market cap on Tuesday after UBS hiked its price target. Art Hogan, chief market strategist at B. Riley Wealth, said Micron “sits at the center” of growing demand for memory. Memory chips manage and transfer data for AI, while Nvidia’s GPUs do much of the actual AI processing. Reuters
Qualcomm shares jumped almost 5% Tuesday after Bloomberg News said the company landed a deal to supply ByteDance with AI data-center chips called ASICs. Reuters hasn’t confirmed the deal, but said some buyers are looking for cheaper options than Nvidia’s chips. Broadcom and Marvell are also working in custom silicon, Reuters said.
The bearish calls on Nvidia are getting louder. Michael Burry said in recent Substack posts the “conditions for an aggressive fall” in Nvidia are strong and pointed to heavy customer concentration, Business Insider reported. Burry also pointed to the threat of a “bullwhip” effect—a supply chain snapback where small demand shifts trigger outsized swings in orders. Business Insider
The market backdrop is still positive. Goldman Sachs bumped its S&P 500 year-end target up to 8,000 from 7,600, citing earnings growth fueling this year’s gains. The bank said AI infrastructure firms could account for nearly half of 2026 earnings growth.
Nvidia heads into Wednesday trading in a spot it knows well. The stock carries a price tag suited for a company shaping the AI trade, but it is being tracked as if there’s no margin for error.
