Nvidia stock looked set to slide again on Wednesday as the prospect of a full-blown war in the Middle East spooked investors.
The chip designer's shares fell 1.37% to $115.40 ahead of the opening bell, compared with a 0.1% slide in futures for the benchmark S&P 500.
The losses came with the market fretting about Iran's attack on Israel Tuesday, which led to oil prices spiking and U.S. stocks tumbling.
Nvidia and other megacap names like iPhone maker Apple and IT giant Microsoft were among the session's biggest losers as investors fled tech for safer sectors, such as utilities.
How Israel responds to the Iran's missile barrage will likely determine how those stocks perform on Wednesday, with any sign that the conflict could escalate further likely to cement the pivot away from Big Tech.
Nvidia shareholders will also be weighing up a report from Ming-Chi Kuo, a Taiwan-based analyst for TF International Securities, that the semiconductor designer is pausing development of one of the server configurations it was planning for its Blackwell graphics processing units, set to launch some time this quarter.
The alleged decision to scrap the dual-rack NVL36 server is sensible, but "the transition may confuse some market participants regarding supply chain changes," he said in a post on the publishing platform Medium. Nvidia didn't immediately respond to a Barron's request for comment.