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Here’s a look at AI stocks in premarket trading as of 8:40 a.m. ET.
- NVIDIA (NVDA): Down .74% amidst a general Nasdaq decline. The stock might also be trending down after Broadcom’s bullish 2027 guidance confirmed deep engagement with many customers.
- Broadcom (AVGO): Up 5% premarket after issuing strong earnings guidance and guiding toward strong demand across customers in 2027.
- Lumentum (LITE): A company NVIDIA invested in earlier this week that’s now dropping after quotes from Broadcom that pushed off broad co-packaged optics (CPO) deployment until 2028. Coherent (COHR) is also dropping after Broadcom’s call.
NVIDIA (Nasdaq: NVDA) shares are down .56% in premarket trading on Thursday. We’ll be tracking the stock’s movements in this live blog, but two big stories are dominating so far this morning. First, NVIDIA CEO Jensen Huang said at a conference last night the company’s $100 billion OpenAI deal is ‘probably not in the cards.’
Second, chief NVIDIA rival Broadcom reported earnings last night. We were live-blogging the event, and I was stunned how much Broadcom CEO Hock Tan was going all-in on revealing bullish future news. He came into the earnings with a clear intent: proving that Broadcom had extremely strong demand for 2027, and remains NVIDIA’s number one competitive threat.
Let’s dive into each major news story!
Jensen Huang Steps Back From OpenAI Investments
The headline this morning is that Jensen Huang suggested NVIDIA would likely not proceed with a previously discussed $100 billion investment in OpenAI, and that the company intends to curtail future investments in AI frontier model companies like OpenAI and Anthropic.
That is worth pausing on. Back in Q3 FY2026, NVIDIA had announced a strategic partnership with OpenAI to “deploy at least 10 gigawatts of NVIDIA systems for next-generation AI infrastructure.” That deal positioned NVIDIA not just as a chip supplier, but as a capital partner in the AI buildout. NVIDIA recently invested in OpenAI at a smaller amount, but walking back the full terms of their partnership is notable.
At the end of the day, concerns that NVIDIA has been creating ‘circular funding’ for AI companies has weighed on the company’s stock. Bears have pointed to these deals and compared them to what happened during the Dot-Com bust with fiber companies like Nortel providing ‘vendor financing’ that later blew up. NVIDIA likely wants to tamp down on these accusations, and there’s plenty of capital available for leading frontier model companies. OpenAI just closed a $110 million round (NVIDIA ivnested $30 billion in it), and Anthropic’s recent rounds have been oversubscribed.
I wouldn’t expect this to signal an end to NVIDIA’s investment activity. After all, it was just a couple days ago the company invested $4 billion between Lumentum (Nasdaq: LITE) and Coherent (Nasdaq: COHR). Rather, Huang’s quotes signal NVIDIA will focus on more strategic deals across its supply chain rather than writing the massive checks model companies require.
Broadcom Surges on AI Demand Guidance
Meanwhile, NVIDIA’s closest rival in the AI chip race is having a very good morning. Broadcom (AVGO) is up 6.5% in premarket trading after reporting strong Q1 FY2026 results last night. AI semiconductor revenue came in at $8.4 billion, up 106% year over year, and the company guided for $10.7 billion in AI semiconductor revenue in Q2. CEO Hock Tan put it plainly on the earnings call:
“Our AI revenue growth is accelerating, and we expect AI semiconductor revenue to be $10.7 billion in Q2.”
Hock Tan, Broadcom CEO, Q1 FY2026 Earnings Call, March 4, 2026
Broadcom also hinted at strong demand visibility into 2027, with AI chip demand trending toward roughly 10 gigawatts of capacity. For context on the full earnings picture, our team covered the setup and results in detail here.
Broadcom’s surge is a double-edged signal for NVIDIA investors. On one hand, it validates that AI infrastructure spending is real, durable, and accelerating. On the other hand, Broadcom is not just a passive beneficiary here. It is actively taking share in custom AI accelerators, and its hyperscaler relationships are deepening every quarter.
Broadcom CEO Hock Tan went to pains to describe their relationship with each hyperscaler and major customer, including noting they expect to deliver 3 gigawatts worth of inventory to Anthropic next year. Clearly, Broadcom remains NVIDIA’s number one rival.