A trader works on the floor of the New York stock Exchange during morning trading on Aug. 23, 2024.
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The Nasdaq Composite pulled back Wednesday, pressured by declines in Nvidiaas investors braced for the chipmaker’s latest earnings report.
The tech-heavy index fell 1.1%, while the S&P 500 slipped 0.6%. The Dow Jones Industrial Average also pulled back by 0.3%.
Wall Street is keeping an eye on Nvidia to gauge the sustainability of the broader tech and AI trade. The semiconductor giant — slated to report after the close — has surged 159% in 2024, raising questions of how much more room there is for the stock to run. On Wednesday, it fell 2%.
Focal points for investors include the delivery schedule for Nvidia’s Blackwell chips and an update on the demand for AI. Art Hogan, chief market strategist at B. Riley Wealth Management, believes that Nvidia can deliver another upside surprise for investors.
“The reason one can feel confident rests with the fact that their largest customers have already reported and talked about how much they’re spending on their chips,” he told CNBC. “All of the hyperscalers spoke to massive amounts of capex spend on the amount of GPUs they need to move forward with their AI strategies.”
Hogan added: “It’s a company that’s done a pretty good job of beating expectations pretty consistently, and a company that we know all of its largest customers continue to demand all the product they can get from them.”
Other technology stocks were also trading lower on Wednesday, with “Magnificent Seven” peers Amazon, Google and Microsoft all in the red.
Nordstrom advanced 5% after the retailer posted adjusted earnings in the second quarter that surpassed expectations. Semiconductor developer Ambarella jumped nearly 11% on upbeat revenue guidance in the third quarter. PVHowner of Calvin Klein, slumped more than 6% on a disappointing outlook for the current quarter.
Elsewhere, a regulatory filing showed that Warren Buffett’s Berkshire Hathaway sold shares of Bank of America once again. The conglomerate dumped more than 24 million shares for $981.9 million in earlier sessions.
