Indian stocks that are focused on artificial intelligence (AI) were trading in red on February 27 after the announcement of fourth quarter results of AI giant Nvidia Corp.
Data center-themed stocks like Anant Raj, E2E Networks, Black Box declined up to 5% on February 27 as Nvidia warned that gross profit margins would be tighter than anticipated as it rushes to roll out a new chip design called Blackwell. And there’s the risk of US tariffs weighing on results.
While Nvidia delivered a 78% surge in quarterly revenue, it said its first-quarter margin would tighten to about 71% from 73.5%, lower than the 72.2% estimated by analysts, as it ramps production of its new flagship Blackwell AI chips.
Shares of Taiwan Semiconductor Manufacturing Co (TSMC), Nvidia's main supplier of chips, slipped 0.47%, while South Korean chipmakers Samsung Electronics and SK Hynix fell 0.18% and 1%, respectively.
The launch of low-cost AI models from DeepSeek last month raised fears of a pullback in spending on Nvidia's priciest AI chips and evaporated more than half a trillion dollars of its stock market value in a single day, a record on Wall Street.
Adding to worries, an analyst report suggested Microsoft was scrapping some data center leases.
At 2:15 pm on February 27, shares of E2E Networks on BSE were trading 4.76% lower at Rs 1,895 apiece. Shares of other data center-focused stocks like Anant Raj and Black Box were trading 5.5% and 5% lower at Rs 481 and Rs 392.4 apiece, respectively.
Shares of Orient Technologies were trading 3% lower at Rs 320 apiece and those of Netweb Technologies were quoting 4.5% lower at Rs 1,489 apiece.
AI stocks have done well in the recent past amid massive anticipation of more AI usage and the need for data centers for the technology and the concomitant power demand.
With inputs from agencies
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