Investing.com — Wall Street is trading lower on Friday after disappointing Nvidia expectations. Starbucks may be exploring options for its Chinese operations, while the chairman of Adani Group has been indicted over bribery claims.

1. Nvidia’s revenue forecast disappoints

Shares of Nvidia (NASDAQ:) retreated in premarket trading Thursday after the AI ​​darling projected its slowest revenue growth in seven quarters, largely as investors grew accustomed to the world’s most valuable company exceeding expectations.

Nvidia’s fourth-quarter forecast indicated that the company’s revenue growth will slow from 94% in the third quarter to about 69.5%.

This raised questions about whether the artificial intelligence boom is waning.

But Nvidia was at pains to point out that there was no shortage of companies eager to create new AI systems using its chips, but that supply chain constraints would result in demand for its chips falling in fiscal 2026 would exceed supply for several quarters.

“Expect shares to tumble in the near term as investors digest the lack of ‘sizzle,’ but we continue to like the stock for its ‘substance,'” Bank of America Securities analysts said in a note.

Nvidia is in the process of launching its powerful Blackwell family of AI chips, which will initially weigh on the company’s gross margins but will improve over time.

“The key dynamic here is the move to Blackwell – where demand was described as ‘staggering’,” said analysts at Morgan Stanley (NYSE:). “The Blackwell restrictions are likely to remain a major factor for at least a year, but we continue to see a strong Blackwell cycle as a driver.”

2. Futures are trending lower on Nvidia concerns

US stock futures headed lower on Thursday, weighed down by disappointing expectations from tech giant Nvidia.

At 03:50 ET (08:50 GMT), the contract was down 60 points (0.1%), down 17 points (0.3%) and down 82 points (0.4%).

Nvidia, which recently overtook Apple (NASDAQ:) as the most valuable publicly traded company in the world, released a revenue forecast that indicated a slower pace of revenue growth than in previous quarters. It also flagged supply constraints, especially in the upcoming Blackwell line of next-generation AI chips.

This relative weakness, given the high expectations, from such a heavily weighted company could set the tone for the markets for the rest of the week.

There will be data later in the session for investors to digest, while several Federal Reserve officials will also speak in the coming days.

3. Chairman of Adani Group charged in bribery scheme

Shares of the listed companies of India’s Adani Group plunged on Thursday after billionaire chairman Gautam Adani was indicted in a federal court in New York for his suspected role in a $265 million bribery scheme.

The 62-year-old billionaire and the seven other defendants have been accused of paying substantial bribes to Indian government officials to win solar power contracts that could generate more than $2 billion in profits.

This resulted in shares in the conglomerate’s listed companies falling between 10% and 20%, with Adani Enterprises (NS:) – the conglomerate’s main listed unit – fell 10%.

A spokesperson for the Adani Group said the allegations are “baseless and denied.”

These allegations herald a new round of regulatory troubles for Adani, and come nearly two years after a short-seller report from Hindenburg Research accused Adani of similar schemes.

The report had prompted criticism of Adani from US and Indian regulators, although India’s securities regulator said it had found little wrongdoing.

Shares of companies under the Adani Group lost more than $100 billion after the Hindenburg report in early 2023, but have since recovered most of their losses.

4. Starbucks considers business options for China

Starbucks (NASDAQ:) is considering options for its China operations, including a possible stake sale, as the company tries to revive sales under new CEO Brian Niccol, according to a report.

The coffee chain is in talks with advisors on how to grow its Chinese business, including the possible introduction of a local partner, Bloomberg reported.

China is Starbucks’ largest market after the US, but the company has faced increasing competition in the country from other foreign players and from local offerings in recent years.

In addition to the Chinese problems, the company has also seen declining sales in the US and earlier this year turned to Niccol, previously with Mexican restaurant chain Chipotle Mexican Grill (NYSE:), as CEO.

5. Rough increase due to increased tensions between Russia and Ukraine

Crude oil prices rose on Thursday, boosted by fears of supply disruptions due to worsening tensions in the war between Russia and Ukraine, offsetting the impact of a bigger-than-expected rise in US inventories.

At 3:50 AM ET, U.S. crude oil futures (WTI) rose 1.3% to $69.64 per barrel, while the contract rose 1.2% to $73.66 per barrel.

Crude oil prices rose this week as Ukraine’s use of US and British long-range weapons against Russia, which Moscow had warned about for months, was seen as a major escalation.

Still, overall gains were limited by concerns about slowing demand, especially as the U.S. grew stronger than expected, rising 545,000 barrels to 430.3 million barrels in the week ended Nov. 15.

More worrying for oil markets was the increase of almost 2.1 mb, which raised some concerns that fuel demand in the US was declining as the winter season approached.