Nvidia Stock Gains Premarket Despite Bearish Supplier Signal: What’s Driving It Higher?

• Investors are closely watching Nvidia GTC, which kicks off in San Jose on Monday, and is expected to feature a series of new products and server systems.
• Ming-Chi Kuo said Nvidia is accelerating production of its language processing units (LPUs), specialized chips that are in high demand for AI workloads.
• Stocktwits sentiment for NVDA remained ‘bearish’ as retail traders also focused on the developments related to the U.S.-Iran war.

Nvidia Corp.’s shares rose nearly 1% in early premarket trading on Monday as U.S. stocks broadly edged higher, with investors shrugging off a potential warning sign on AI server demand.

Foxconn, one of Nvidia’s key manufacturing partners in Taiwan, reported quarterly profit that missed analyst expectations, a result some believe could signal softening demand for AI servers. The company’s net income fell 2.4% to NT$45.2 billion ($1.4 billion), short of the NT$59.9 billion analysts had projected. Revenue in the prior quarter grew 22% to NT$2.6 trillion ($82.6 billion), beating expectations.

Foxconn’s cloud and networking segment, which only last year overtook smart consumer electronics to become the company’s largest revenue contributor, accounts for roughly 40% of its total sales. That makes any slowdown there worth watching closely, as it signals what it means for broader AI infrastructure spending.

However, traders are more keenly focused on Nvidia kicking off its developer conference, GTC, in San Jose on Monday. The annual event features the unveiling of new AI chips, data-center systems, and software tools, with this year’s edition expected to place a heavy focus on agentic AI platforms. CEO Jensen Huang will deliver his keynote at 11 am PT.

Last week, news leaked of a forthcoming agentic platform from Nvidia called NemoClaw, designed for enterprises to build AI agents to perform tasks for their own workforces.

Another signal investors are parsing is a comment from a noted Asia supply chain analyst that the company is accelerating production of a special chip for AI workloads. Ming-Chi Kuo said in an X post that Nvidia’s shipment of language processing units (LPUs), developed by Groq, could reach 4-5 million units in 2026–2027, which would be more than 10 times the growth compared with past volumes.

Nvidia acquired Groq in late 2025 to integrate its specialized LPU technology, which offers superior speed and lower latency for Large Language Model (LLM) inference compared to traditional GPUs.

Kuo said that Nvidia is designing high-density services for LPUs and that the chip system is in high demand as new AI applications, such as AI agents, require ultra-fast responses. Nvidia is also looking to plug LPUs more closely with its Nvidia’s software ecosystem, like CUDA.

On Stocktwits, retail sentiment for NVDA remained ‘bearish’ heading into Monday’s market open. The majority of retail traders focused on updates on the U.S.-Iran war, which has an outsized impact on markets, and on the GTC conference.

“Oil is at $100 a barrel, the entire Middle East is at war, we’re on the brink of WWIII, and we’re up and nearing $182. I’d say that’s pretty damn good,” said a user on NVDA’s stream.

Nvidia shares are down 3.4% year to date, as of their last close.

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