Nvidia shares fall 3.11% premarket as AI sector retreats on bubble concerns ahead of key earnings.

Nvidia fell 3.11% in premarket trading amid growing concerns over AI sector volatility and regulatory headwinds. The stock’s decline followed reports that Amazon and Microsoft are supporting legislation to further restrict Nvidia’s ability to export advanced chips to China, a critical market for the company. Simultaneously, broader AI stocks retreated due to fears of a speculative bubble, with analysts emphasizing that Nvidia’s upcoming earnings report will be pivotal in determining whether the AI trade remains viable. While several analysts raised price targets for Nvidia ahead of its earnings, citing strong AI chip demand and data center growth, the market’s recent pullback suggests caution ahead of key results. The export restrictions and broader sector jitters appear to have outweighed near-term optimism, driving the premarket selloff.