NVIDIA stock fell 11% in October, and the article argues the drop mostly reflected news from Intel and Alphabet plus worries over who will pay for the AI buildout, not NVIDIA's own results. Intel guided fourth-quarter revenue to $15 billion to $16 billion, below the $17.1 billion analysts expected, while Alphabet's capital spending more than doubled to $51.4 billion; meanwhile NVIDIA's sales to AI clouds, industrial and enterprise buyers reached $40.3 billion in the July quarter, up 138% from a year earlier. The main risk cited is that NVIDIA increasingly backs its own customers, with five direct customers owing 70% of its receivables at the end of July, and receivables rising to $63.1 billion from $38.5 billion in January. Its forward P/E of about 16.8x is a five-year low against a five-year average of 36.1x, and the author says he would increase his position before the Nov. 17 report, though he would rethink if guidance weakens or lenders pull back.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
NVDAAI investmentsemiconductorsvaluationIntel
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/30/2026 | 204.81 |
| Change that session | -4.14% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Global chip stocks slide after Intel’s weak outlook
Chip stocks fell across Asia, Europe and the U.S. in premarket trading on Friday after Intel's weak fourth-quarter forecast and Amazon's results revived concerns about AI spending. Intel was down about 25.5% to around $68.61 premarket, even though it beat third-quarter estimates with adjusted EPS of $0.52 and revenue up 21% to $16.5 billion. Its fourth-quarter revenue forecast of $15 billion to $16 billion and adjusted EPS outlook of $0.25 both fell short of analyst expectations of $17.08 billion and $0.44. Amazon fell about 6.3% after missing on revenue and earnings, though it kept its 2026 capex forecast at $220 billion. AMD, Nvidia and Broadcom dropped about 8.2%, 2.9% and 3.8% premarket, while SK Hynix closed 7.1% lower in Asia and ASML fell more than 5% in Europe.
- NVDA Stock Drops: Nvidia May Back Data Center Loan Its Own Customer, Analyst Sees Little Impact From Intel’s Weak Report
Nvidia shares fell 2% in overnight trading amid a broad selloff in AI infrastructure stocks, following mixed reports from Intel and Amazon. Bloomberg reported that Nvidia is in talks to provide credit support for an Nscale data center in West Virginia that Anthropic plans to use, while Nscale is pursuing an IPO with a $30 billion target that some investors have pushed back on. Intel plunged 23% after forecasting December-quarter sales and profit below expectations, while AMD fell 6.4% and Micron 3.4%. Deepwater Asset Management's Gene Munster said Intel's weak outlook should not be extrapolated to Nvidia, as the main issue is PC demand, and noted that Meta and Alphabet expect significantly higher capex. Nvidia stock is up 15% year to date.
- Intel rebounds as semiconductor stocks recover from sell-off
Intel rose about 5% to around $94 on Monday as semiconductor stocks recovered from a steep sell-off the previous week, when Intel had fallen more than 14% according to Barron's amid doubts over the sustainability of AI spending. The iShares Semiconductor ETF gained about 4% in premarket trading after nearly 12% losses the previous week, while AMD, Nvidia and Micron rose between 2% and 4%. JPMorgan upgraded Intel to neutral from underweight, citing agentic AI and shortages of high-end chips as potential drivers of stronger earnings. The rally may offer some relief, but doubts remain over whether tech companies can generate enough returns from their AI investments to justify elevated valuations.
- Intel leads chip stocks higher as investors jump back into AI trade
Chip stocks rebounded on Monday as investors bought the dip after last week's steep AI trade sell-off. The PHLX Semiconductor Index (^SOX) rose 2%, reversing a recent semiconductor rout. Intel (INTC) jumped 5% after JPMorgan upgraded the stock to Buy, citing "solid execution." Nvidia (NVDA) and AMD (AMD) also gained, while a Goldman Sachs upgrade of CoreWeave (CRWV) to Buy from Neutral helped lift AI sentiment. Arm Holdings (ARM), Micron Technology (MU) and SK Hynix (SKHY) also rebounded after sharp declines last week.
- Intel, Broadcom CEOs warn capital crunch could become AI's biggest bottleneck
Broadcom CEO Hock Tan said capital could be an even bigger constraint on AI expansion than shortages of semiconductors, memory or electricity, while Intel CEO Lip-Bu Tan flagged rising cost of capital and the need for companies to show returns. Speaking at the DBS Asia Future Forward Conference in Singapore, Hock Tan said demand for compute infrastructure still exceeds supply and the imbalance could last through 2029, possibly into 2030. He expects wafer shortages could ease by 2028 or 2029, with power availability improving as new infrastructure comes online. Both executives remain bullish on near-term demand, but Hock Tan warned demand could slow if advanced AI models disappoint or capability gains plateau. Lip-Bu Tan stressed that companies will increasingly need to show tangible returns from AI investment through efficiency gains and new business models.
- Amkor Rises 4.7% on New $1.3 Billion NVIDIA Deal Highlighting the “Critical Role” of Packaging
Amkor Technology shares rose 4.7% after the chip packager said it will add capacity in South Korea for NVIDIA under a new $1.3 billion agreement, bringing its multi-year NVIDIA agreements in Arizona and South Korea to $3 billion. NVIDIA is prepaying to lock in that capacity, which the article cites as evidence that advanced packaging has become a bottleneck in the AI buildout. The prepayments ease pressure on Amkor's cash, as fiscal 2025 capex of $900 million absorbed most of about $1.1 billion in operating cash flow. Consensus normalized EPS is expected to jump 71%, from $1.50 in fiscal 2025 to $2.57 in 2026, with the third-quarter report due after the close on Oct. 26. The stock trades at about 13.9x forward earnings, below its five-year average of 16.0x, but the author notes the good news may already be reflected in the price.
Related markets
Latest news
- The Force Behind Zelensky Defying Trump's Order
Russian Deputy Prime Minister Alexander Novak said on October 30 that Ukraine resumed drone attacks on three Russian oil refineries and one gas chemical complex, causing light damage to one facility. Presidential adviser Yuri Ushakov said Ukraine was ignoring President Trump's call to stop the attacks and was counting on European support. According to the Wall Street Journal, Ukraine had informally paused attacks on Russian refineries from mid-October under U.S. pressure, out of concern that rising global fuel prices would hurt Washington before the midterm elections on November 3. President Zelensky denied a full halt order, saying the military had only become more cautious. The Kremlin said the attacks would not hinder preparations for talks between Russia, Ukraine and the U.S.
- Michael Burry Is Still Short Palantir. Here's What Its Nov. 2 Report Has to Show.
Michael Burry still holds put options against Palantir, which expire between June and December 2027. The stock closed at a record $209.05 on Oct. 9 and traded near $195 at the time of writing. Guidance calls for third-quarter revenue of $2.160 billion to $2.164 billion, about 83% growth, but Palantir has typically beaten its top guidance by 6% to 7%, which could mean about $2.3 billion. U.S. commercial revenue rose 149% to $764 million in the second quarter, and keeping management's target of at least $3.424 billion for 2026 on track implies about $930 million in the third quarter. The article notes that even a strong report would not make the stock cheap at about 166 times past earnings, though it could make Burry's under-$50 view harder to accept.
- Vietnam City Holds 8.8 Billion Tons of ‘Black Gold,’ 3.6 Billion Tons Lie Less Than 300m Underground
Quang Ninh, which accounts for over 90% of Vietnam's national coal reserves, is estimated to hold 8.8 billion tons of coal, with 3.6 billion tons less than 300 meters deep. Coal was long the province's economic backbone, but the mining share of its economy fell from about 35% in 2010 to 8.11% of GRDP in 2025 as the locality shifted toward green development, services and processing industries. Quang Ninh's economy grew nearly 10% a year on average over 2021–2025 and rose 11.89% in 2025, with GRDP reaching 368,445 billion VND and per-capita GRDP of $10,402. Since September 1, Quang Ninh has officially become the eighth centrally run city of Vietnam, after the National Assembly approved its establishment with all attending delegates voting in favor.
- Amazon Plans to Spend More on AI. Here’s Why the Stock is a Once-in-a-Decade Buy Hiding in Plain Sight.
Amazon reported earnings below estimates and a deeper-than-expected negative free cash flow, while saying it plans to spend “meaningfully more” on AI next year; the stock fell afterward and was down 14% from its August high. AWS revenue grew 39% to $46 billion, and the company kept its capital spending forecast for the year at $220 billion. Trailing 12-month free cash flow was negative $42 billion due to property and equipment purchases. CEO Andy Jassy said AWS, now at a $184 billion annual run rate, could become a trillion-dollar revenue business within five to 10 years; the author argues the worries about AI spending may be overdone and that Amazon is reasonably priced at 30x forward earnings.
- President Donald Trump Claims, "Tariffs Are Making Us Much Richer," but Economists Show They Have Unintended Consequences
President Trump has said tariffs are making the U.S. much richer and bringing in “trillions of dollars,” but the article cites research showing a more complicated picture. The Tax Foundation projects the tariffs will raise $1.426 trillion in revenue over 2026–2035, while also reducing full-time-equivalent employment by 338,000 jobs and cutting GDP by 0.4%. Three New York Fed economists estimate that the 2025 tariffs added 2.9 percentage points to goods price inflation by February 2026, and that without them goods prices would have fallen slightly. They estimate a 10% across-the-board tariff raises consumer goods prices by 2.6% after one year, mostly through pricier imports and partly through higher input costs for U.S. producers.
- Deputy PM: Electricity Prices Expected to Fall 2%, Gasoline Special Consumption Tax Cut to 0%
The government is directing Vietnam Electricity (EVN) to cut costs to lower retail electricity prices by about 2% until March 31, 2027, and plans to cut the special consumption tax on gasoline from 7% to 0% from November to the end of 2026, at a cost of about 4,000 billion VND. Deputy Prime Minister Nguyen Van Thang said these measures create about 0.07 percentage points of room to keep inflation within the National Assembly's 4.5% target, while nine-month CPI rose 4.52%. Nine-month GDP grew about 9.01%, but reaching 10% for the full year requires fourth-quarter GDP growth of 12.5%, which the government calls a very big challenge but not impossible. Public investment disbursement exceeded 720 trillion VND as of October 29, above 75% of the plan, and the government has allocated 3.15 million billion VND of the 3.42 million billion VND in medium-term public investment capital approved by the National Assembly.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.