Nvidia shares fell more than the broader market amid no new China orders and ahead of its May 20 earnings report.
Nvidia (NASDAQ: NVDA) shares declined 3.3% at midday, extending losses beyond a 1.25% drop in the Nasdaq Composite. The pullback follows a 15% surge over the past month as investors await next week’s earnings release.
The stock’s outperformance had been driven by strong AI demand, though no major China orders were announced despite regulatory approval for H200 chip sales. Chinese firms like Tencent and Alibaba have signaled increased domestic chip production, potentially reducing reliance on Nvidia.
Nvidia’s guidance has not factored in China sales, meaning any orders would boost results. The company has consistently exceeded earnings estimates in recent quarters, with markets watching for another beat on May 20.