Nvidia's Forecast Falls Short: Tech Stocks React

Tech futures were flat on Thursday after Nvidia's quarterly forecast underwhelmed investors, despite beating revenue and earnings expectations. Semiconductor peers fell, but losses were mitigated by gains in Nvidia's major customers like Microsoft and Meta. Market movements were also influenced by upcoming economic data releases.

Futures tracking the tech-heavy Nasdaq and the benchmark S&P 500 remained flat on Thursday following Nvidia's quarterly forecast, which did not meet the investors' high expectations despite surpassing revenue and earnings projections.

Shares of Nvidia dropped nearly 5% in premarket trading after a revenue forecast for the current quarter that largely aligned with expectations. Market analyst Josh Gilbert from eToro noted that while some may be disappointed by the outlook, the long-term growth story for Nvidia remains unaffected.

Declines in semiconductor peers Broadcom and Advanced Micro Devices were somewhat counterbalanced by gains in Nvidia's large-cap customers, including Microsoft, Meta, Alphabet, and Amazon. Additionally, economic data releases, including the second GDP estimate for Q2 and jobless claims data, are highly anticipated by traders.

(With inputs from agencies.)