Despite posting robust earnings and positive guidance last week, NVIDIA’s (NASDAQ: NVDA) stock is under heavy selling pressure today. Shares fell 8.4% shortly after 3 PM ET on Monday and are down 13% since last Wednesday’s post-earnings close. Analysts at Mizuho, led by desk analyst Daniel O’Regan, have identified five key concerns weighing on the stock:
Key Concerns Impacting NVIDIA’s Stock
1. Tougher China Restrictions
Concerns are mounting over potential new China AI and export license restrictions. Mizuho’s team, led by Vijay Rakesh, has flagged that any additional ban could reduce NVIDIA’s FY26 estimates by $4–5 billion, or up to $0.18 per share. This potential headwind is adding significant pressure on investor sentiment.
2. Singapore Investigations
Singapore authorities are investigating whether Dell (NYSE: DELL) and Super Micro servers shipped to Malaysia contained NVIDIA chips that are currently barred from entering the Chinese market. This probe underscores the growing scrutiny over the supply chain and the role of middlemen in the semiconductor industry.
3. Decline in CoWoS Orders
Recent reports from Trendforce have raised concerns that NVIDIA’s CoWoS (Chip-on-Wafer-on-Substrate) orders may decline. With the Hopper generation ending and anticipation building for the GB300 boost, the market remains cautious about the near-term outlook for high-end semiconductor orders.
4. Earnings Guidance Concerns
Despite the solid quarterly results, last week’s revenue and margin guidance continue to dampen investor enthusiasm. The cautious outlook on future performance is contributing to the selling pressure as market participants reassess their expectations.
5. Lack of Catalysts Ahead
Investors are also troubled by the absence of near-term catalysts. With nothing significant expected until the upcoming GTC in a few weeks, the current trading environment remains subdued, adding to the stock’s volatility.
Market Impact and Broader Implications
NVIDIA is down 7% year-to-date, and its underperformance is starting to weigh on the broader chip index and even the S&P 500. The combination of tougher regulatory risks, ongoing investigations, declining order trends, and subdued forward guidance is creating a challenging environment for the stock.
Data Insights
For those looking to dive deeper into NVIDIA’s financial performance and margin trends, Financial Modeling Prep provides valuable insights through their APIs. For example, you can review key financial ratios via the Ratios (TTM) API, or explore detailed earnings trends using the Historical Earnings API.
Conclusion
While NVIDIA delivered strong earnings and guidance last week, a mix of regulatory challenges, supply chain investigations, order concerns, and the lack of near-term catalysts is fueling significant selling pressure. Investors will be closely watching for any signs of a catalyst at the upcoming GTC that might reverse the current trend. Until then, market volatility is likely to persist, and the chip sector may continue to experience broad-based pressure.
