Nvidia beat the print. So why is the Nasdaq slipping pre-market?
Wall Street closed Wednesday (May 20) higher across the board ahead of Nvidia's earnings. The S&P 500 rose 1.08% to 7,432.97, Nasdaq jumped 1.54% to 26,270.36, and the Dow cleared 50,000 for the second time this month. Risk-on dominated heading into the most-watched print of the quarter.
After the close, Nvidia (NVDA) reported revenue and EPS above consensus, raised next-quarter guidance, and hiked its dividend to $0.25 per share. The AI capex thesis is intact on fundamentals.
But the Nasdaq pre-market is softening on Thursday. Traders are taking profit after three sessions of risk-on. Tonight's Nasdaq session decides whether the beat is enough to extend the rally or just an excuse to rotate.
Tonight's Watchlist 📈
| Stock | Movement | What to Watch |
|---|---|---|
| NVDA | Pre-market soft post-print | Beat on revenue, EPS, and guide. Nasdaq reaction decides whether AI capex narrative can extend further |
| ASML | Pre-market +2.8% in Europe | UBS raised price target from €1,600 to €1,900. Direct validation of the AI equipment cycle |
| AVGO | Trading in sync with NVDA | Major custom silicon AI player. If Nasdaq holds NVDA after the print, AVGO is the fastest ripple beneficiary |
Tonight's Catalysts 🧨
- The post-print Nvidia reaction is the main question tonight. The beat is confirmed, but a soft Nasdaq pre-market suggests the market may already have priced in high expectations. What matters now is whether management commentary on 2027 demand is strong enough to absorb profit-taking across AI names like AMD, TSM, and MU.
- South Korea early-May semiconductor export data still shows acceleration. The macro signal supports the case that AI infrastructure spending has not cooled, providing additional ballast for Asian chip names.
- Walmart (WMT) reports pre-market with focus on consumer health, tariff pass-through, and advertising margin. Retail signal serves as a US household gauge under sustained high rates.
Pre-Market Pulse 📊
The Nasdaq is slightly negative pre-market this morning. NVDA itself softened post-print despite the across-the-board beat. ASML popped 2.8% on the UBS upgrade. Samsung's union deal added supply-chain positive sentiment for the Asian chip complex, lifting KOSPI.
Macro Note 📝
WTI crude has slid more than 5% over two sessions on Iran-US negotiation optimism, now near $100. The 10-year Treasury yield holds at 4.60%. USD/IDR sits flat near 17,715. Macro stays quiet, so the stage tonight belongs to the AI narrative.
Nvidia's beat confirms AI fundamentals remain strong, but the Nasdaq pre-market reminds that the market has been pricing in high expectations. If you have AI exposure, this is not the moment for all-in or all-out. The more sensible play: check your AI weighting, then prepare for both Nasdaq scenarios tonight.
If the Nasdaq rewards the beat with continuation, existing positions can hold. If the Nasdaq sells the news instead, NVDA, ASML, and AVGO have the fundamental confirmation to be add candidates on the dip. Avoid buying or selling on the open print alone without directional confirmation.
What stocks are you watching tonight? Check Watchlist on Gotrade to see how your AI chip names move post-Nvidia print.
