By George Glover and Adam Clark
Nvidia stock was sliding on Monday as investors' recession fears overshadowed more signs that demand for the artificial-intelligence chip maker's products remains sky-high.
Shares slipped 2.4% to $110.01 in premarket trading. Futures tracking the benchmark S&P 500 were down 1%.
Nvidia stock is down 16% this year, tumbling as the market struggles to make sense of U.S. President Donald Trump's tariffs. Trump refused to rule out a recession Sunday, sparking fears that his trade policies could drag down growth.
Investors were likely focusing on those comments rather than the fundamentals of AI demand. Those were on show when Taiwan Semiconductor Manufacturing -- Nvidia's contract manufacturer for AI chips -- reported Monday that its February sales were up 43% from the same month last year.
Additionally, Hon Hai Precision Industry said Nvidia had helped it develop its own large-language AI model. The electronics maker, which is known as Foxconn internationally, said Monday that Nvidia supported the development of its FoxBrain AI model through its Taiwan-based supercomputer and technical consulting.
Write to George Glover at george.glover@dowjones.com and Adam Clark at adam.clark@barrons.com
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(END) Dow Jones Newswires
March 10, 2025 06:22 ET (10:22 GMT)
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