NVIDIA Shares Fall 3.7% Amid Strong U.S. Jobs Report
Shares of NVIDIA (NVDA) dropped 3.7% in morning trading, falling to $210.65 after opening near $214.87. The decline was driven by a combination of hawkish macroeconomic data and renewed semiconductor sector concerns. A stronger-than-expected U.S. May nonfarm payrolls report showed 172,000 jobs added, more than double the 85,000 forecast, while the unemployment rate fell to 3.4%, crushing hopes for a Federal Reserve rate cut and boosting expectations of a rate hike.
Semiconductor Sector Pressure Following Broadcom Guidance
The semiconductor sector entered the session under pressure following Broadcom’s Q3 AI chip revenue guidance of $16 billion, below the $17.2 billion expected. That guidance miss triggered a broad chip stock selloff, amplifying macro-driven selling in NVIDIA shares. Additionally, NVIDIA’s ex-dividend date on June 4, with a $0.25 per share dividend, contributed to a small mechanical downward adjustment.
Broader Market Impact
The Nasdaq Composite fell 1.8%, the S&P 500 dropped 1.0%, and the Dow Jones edged down 0.2% following the stronger jobs data. Rate-sensitive sectors like technology and AI infrastructure were hit hardest, as rising Treasury yields reduce premiums for high-multiple growth stocks. NVIDIA, with its high market beta and elevated valuation, was particularly affected by this rate-expectations repricing.
Combining Macro and Sector Pressures
The combination of macro repricing, Broadcom’s guidance overhang, and the ex-dividend effect pushed NVIDIA significantly lower, despite the company’s strong fundamentals. Its most recent quarter showed 85% revenue growth, and the company maintains a robust $91 billion revenue outlook.
Current Trading and Valuation Context
NVIDIA now trades roughly 11% below its 52-week high of $236.54, reflecting tension between strong AI demand fundamentals and a tightening monetary policy environment. Investors continue to weigh the company’s long-term growth prospects against short-term market volatility.
