Nvidia Pulls Back Over 10% as Market Caution Rises
As of November 6, Nvidia closed at $186.64, down $20.87 or 10.06% over the past 5 trading days, retreating from around $207. It touched an intraday low of $185.22 on November 5, with heavy short-term correction pressure. The market is focused on changes in AI capital spending, industry valuations and policy risks, with selling pressure on tech stocks rising markedly. In addition, rumors about CEO Jensen Huang's extramarital affair have sparked discussion, and whether it will affect corporate image and investor sentiment remains to be seen.
Vera CPU Shows Performance; Analysts Advise Buying After Stabilization
On fundamentals, Nvidia continues to launch its new-generation Vera CPU, demonstrating AI computing performance and data center market growth potential. Cathay Securities Investment Advisory noted that latest performance tests of the Vera CPU show competitive advantages in AI agent task efficiency and performance per watt, helping lower AI data center computing costs and expand its CPU market footprint. However, given the sharp pullback in the share price, investors are advised to wait for stabilization before buying.
Other AI semiconductor stocks were also affected. After the U.S. midterm elections, the market is concerned the government may tighten regulation of data center construction. TSMC ADR slumped on November 5, though demand for AI advanced processes and advanced packaging has shown no clear reversal and fundamentals remain supported, with buying in batches after stabilization advised. Broadcom fell about 10.4% on November 5 and Intel fell about 10.3%, mainly on concerns over data center regulation, power constraints and slowing AI investment, with a wait-and-see stance advised in the short term.
Big Tech Earnings Diverge; Memory and Cloud in Focus
On individual stocks, Tesla officially launched its Robotaxi ride service in Fort Worth, Texas on November 2, expanding its U.S. autonomous driving footprint and helping accumulate operating data, but fleet scale and profitability remain to be verified, and with the weak share price a wait-and-see stance is advised. Micron has suspended construction of a new memory plant in Taoyuan due to a labor dispute. The project was originally planned at $3 billion to $4.5 billion and may affect capacity expansion after 2028. AI-driven demand for HBM and DRAM remains strong, with a wait-and-see stance advised.
Google announced it will invest $15 billion in Malaysia to expand digital infrastructure, advancing power, water and talent training programs, helping expand Google Cloud AI computing capacity, though the efficiency of capital expenditure returns warrants attention, with buying on dips in batches advised. Apple last quarter revenue rose 12% year-on-year to about $114.5 billion, with EPS of $2.10, both beating expectations, though gross margin this quarter is estimated to fall to 45% to 46%. Fundamentals are solid, with buying on dips in batches advised. AMD last quarter revenue rose 45% year-on-year to $13.38 billion, with adjusted EPS of $2.09 and data center revenue up 97% year-on-year to $8.55 billion, all beating expectations, though the share price has pulled back sharply, with waiting for stabilization before buying advised. SpaceX and Qualcomm signed a multi-year partnership to deploy tens of thousands of 5G base stations in the U.S. starting next year to develop the Starlink Mobile network. Buildout costs and competitive pressure remain to be seen, with a wait-and-see stance advised.