Nvidia Shares Drop More Than 6% Premarket as AMD, Broadcom Rise

Nvidia shares fell more than 6% in premarket trading Thursday, while AMD and Broadcom advanced.

Nvidia had not announced a board decision by early Thursday. The shares closed Wednesday at $173.73 and later traded near $160.91, down 7.38% from the close.

At 5:57 a.m. ET (10:57 UTC), AMD was up 3.6% and Broadcom had gained 2.5%. William Blair upgraded AMD to Outperform on Thursday, citing leadership uncertainty at Nvidia and supply challenges at Intel.

The firm also flagged custom application-specific integrated circuit (ASIC) chips as a risk to AMD's Instinct accelerator business. AMD's graphics processors compete with Nvidia's data center accelerators, while cloud providers have explored AMD's custom designs as an alternative to Nvidia's standard chips.

Through Wednesday's close, AMD had gained 23% this week and Broadcom had risen 18%. Those gains were already in place before Thursday's premarket trading.