On Thursday, U.S. stock index futures remained subdued as Nvidia’s revenue forecast failed to match investor expectations. This dip in confidence comes on the heels of growing tensions between Russia and Ukraine.
Nvidia outperformed quarterly profit expectations, yet predicted its slowest revenue growth in seven quarters, with a decline in adjusted gross margins, leading to a 1.7% fall in premarket trading. According to Dan Coatsworth, an investment analyst at AJ Bell, Nvidia’s growth is impressive, yet declining gross margins and weak forward revenue guidance have concerned investors.
The repercussions were felt across the semiconductor industry, impacting stocks such as Broadcom, Qualcomm, and Intel. Meanwhile, geopolitical disputes and upcoming economic announcements continue to capture investor attention, contributing to market caution.
(With inputs from agencies.)