NVIDIA Corp. (NVDA) stock edged lower in Thursday premarket trading as investors continued rotating away from AI-linked semiconductor stocks following the U.S. midterm elections, even as the broader market held relatively firm.

NVIDIA fell about 0.93% before the bell, while S&P 500 futures rose 0.06%. The Nasdaq-tracking QQQ slipped 0.49%.

Post-Midterm Rotation Pressures Chip Stocks

The weakness extended across the semiconductor group.

Micron Technology Inc. (MU) fell about 3% in premarket trading after dropping nearly 7% Wednesday, while the iShares PHLX SOX Semiconductor Sector Index Fund (SOXX) declined almost 3% before the bell following a roughly 3% loss Wednesday.

Tech analyst Dan Ives said semiconductor stocks could fall another 10%-12% during the current pullback.

Fundstrat's Tom Lee, however, called the AI selloff an "overreaction" and said technology stocks could rally about 20% if hedge funds rotate back into the sector before year-end.

Cramer Sees Tech Leadership Broadening

NVIDIA remains a central AI leader, but CNBC's Jim Cramer said technology leadership may be expanding beyond the stocks that dominated the market over the past several years.

Cramer said NVIDIA, Microsoft, Alphabet and Meta have struggled to sustain recent rallies, while gains in Broadcom Inc. (AVGO), Micron, Advanced Micro Devices Inc. (AMD), Arista Networks Inc. (ANET) and Oracle Corp. (ORCL) suggest investors may be rotating toward a different group of technology winners.

"Tech's trying to make a stand here. It's just not the tech that's led us for the last few years," Cramer said.

He cautioned against drawing broad conclusions from a single positive trading session.

Data Center Resistance Adds Another Risk

Cramer also pointed to growing resistance to data-center construction over electricity costs and water consumption.

He said smaller developers including IREN Ltd. (IREN), Nebius Group N.V. (NBIS) and CoreWeave, Inc. (CRWV) could face greater exposure to those constraints, while larger companies such as Amazon have more resources and flexibility to shift projects to alternative locations.

The debate comes after semiconductor stocks lost roughly $1 trillion in market value last Friday, as investors questioned whether massive AI infrastructure spending can generate sufficient returns.

Technical Analysis

At $199.40, NVIDIA trades 7.7% below its 20-day SMA of $216.12 and 9.8% below its 50-day SMA of $221.20.

The 20-day SMA has also moved below the 50-day SMA, keeping the intermediate trend under pressure.

NVIDIA is additionally about 2.5% below its 200-day SMA of $204.67, placing the stock below a closely watched long-term trend level.

Earnings And Analyst Outlook

NVIDIA is scheduled to report earnings on Nov. 17, 2026.

Consensus calls for EPS of $2.48, up from $1.30 a year earlier, and revenue of $109.17 billion, compared with $57.01 billion last year.

The stock trades at a 25.3-times P/E multiple.

NVIDIA carries a Buy consensus rating with an average price forecast of $341.04 across 50 analysts, with forecasts ranging from $282 to $515.

Recent actions include Melius Research maintaining Buy while lowering its forecast to $315, Needham maintaining Buy with a $300 forecast and Cantor Fitzgerald maintaining Overweight with a $350 forecast.

NVDA Price Action: Nvidia shares were down 1.81% at $196.50 during premarket trading on Thursday, according to market data.