By Adam Clark

Nvidia earnings are a bellwether for the chip sector and peers were mixed following the company's earnings. An upbeat forecast for artificial-intelligence spending was being balanced against slowing growth.

Chip stocks initially fell in after-hours trading as the market focused on Nvidia missing expectations for its vital data-center segment. However, those losses were being pared in the premarket.

American depositary receipts of Taiwan Semiconductor Manufacturing -- Nvidia's key supplier -- were down 1.3% in the premarket. Micron Technology, which provides memory chips for integration into Nvidia's hardware, was up 0.1%.

Among Nvidia's would-be rivals, Advanced Micro Devices was down 0.4% and Broadcom was rising 0.3%.

Nvidia CEO Jensen Huang said he anticipates the largest AI companies will spend $3 trillion to $4 trillion over the next five years. That's good news for the chip sector as a whole but he also dismissed the prospect of the company's biggest clients moving to rival hardware.

"We're in every cloud for a good reason. Not only are we the most energy efficient. Our perf [performance] per watt is the best of any computing platform. And in a world of power-limited data centers, perf per watt drives directly to revenues," Huang told analysts on an earnings call.

Write to Adam Clark at adam.clark@barrons.com

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August 28, 2025 06:13 ET (10:13 GMT)

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