By Adam Clark

Nvidia stock was headed for a further fall on Friday to round off a bad week for the chip maker.

Concerns about the artificial-intelligence trade and the company's prospects in China look to be weighing on the stock.

Nvidia shares were down 1.1% at $186.01 in premarket trading. The stock fell 3.7% on Thursday and is down more than 7% over the past five trading sessions.

That's not much of a hit for Nvidia shareholders sitting on a 40% gain this year so far through Thursday's close. However, worries appear to be growing about the financing needs for AI infrastructure.

OpenAI CEO Sam Altman had to clarify Thursday that the start-up doesn't want federal guarantees for its data centers or a bailout if it fails to meet its $1.4 trillion spending commitments. That came after the ChatGPT developer's chief financial officer said it would welcome a government "backstop" for its investment.

"While...each dollar invested in AI raises the bar for the expected payoff, the momentum behind this theme is strong," wrote Thomas Shipp, head of equity research for LPL Financial in a research note. "Earnings expectations are still growing; the synergies between AI and quantum computing remain unknown, and the current administration appears aligned with AI initiatives."

Meanwhile, Nvidia CEO Jensen Huang confirmed there were "no active discussions" about the company being able to sell its Blackwell AI chips to Chinese customers on Friday, Reuters reported, citing comments made on a visit to Taiwan.

Nvidia has been targeted by Chinese authorities, who have discouraged the use of its AI processors by domestic customers. The company is currently forecasting no Chinese revenue, which implies a loss of between $2 billion and $5 billion in potential sales per quarter, according to its executives.

Among other chip makers, Advanced Micro Devices was down 1.3% and Broadcom was falling 1.1% in premarket trading.

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

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November 07, 2025 07:02 ET (12:02 GMT)

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