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Berkshire Hathaway ( BRK/A ) hits $1 trln in market value for first

time

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Super Micro Computer ( SMCI ) falls on delaying annual report

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S&P 500 -0.80%, Nasdaq -1.30%, Dow -0.64%

(Updated at 1:53 p.m. ET/ 1753 GMT)

By Johann M Cherian and Noel Randewich

Aug 28 (Reuters) -

U.S. stocks fell on Wednesday ahead of a quarterly report

from Nvidia ( NVDA ), Wall Street's centerpiece event of the week that

could shatter or add fresh fuel to a rally driven by optimism

around artificial intelligence.

Shares of the dominant seller of AI processors, due to

report after the closing bell, dropped 2% during the session,

trimming its gain so far this year to 154%.

Following several blowout quarterly reports, Nvidia ( NVDA )

is viewed as the biggest winner so far from AI

technology. Its latest results follow concerns about increases

in already-hefty spending by Microsoft ( MSFT ), Alphabet

and other major players in the race to dominate

emerging AI technology.

"It's been the poster child for the AI boom and it's

really led the charge, so it would be hard for the market to

move on in spite of a disappointment from Nvidia ( NVDA )," warned Keith

Buchanan, senior portfolio manager at GLOBALT Investments in

Atlanta.

"Nobody has their arms around how long Nvidia ( NVDA ) can

continue to surprise on the upside, but, naturally, it can't

last forever," Buchanan added.

Options pricing shows traders anticipate a move of around

9.8% in Nvidia's ( NVDA ) shares on Thursday, a day after it reports its

results, data from analytics firm ORATS showed.

Other chip stocks also dipped, with Broadcom ( AVGO ) and

Advanced Micro Devices ( AMD ) each down about 2%, with the

Philadelphia SE Semiconductor index down 1.8%.

Google-owner Alphabet, Microsoft ( MSFT ) and Amazon ( AMZN ) dipped

1% or more.

The S&P 500 was down 0.80% at 5,580.73 points.

The Nasdaq declined 1.30% to 17,524.21 points, while the

Dow Jones Industrial Average was down 0.64% at 40,985.79 points.

Of the 11 S&P 500 sector indexes, eight declined, led

lower by information technology, down 1.23%, followed

by a 1.14% loss in consumer discretionary.

Investors widely expect the U.S. Federal Reserve will lower

interest rates at its September meeting after Fed Chair Jerome

Powell's support for imminent policy adjustment last week

sparked broad-based market gains.

The CME Group's FedWatch Tool currently sees a 64% chance of

a 25-basis point reduction and a 37% chance of a 50-bps cut.

The Personal Consumption Expenditure report for July, due on

Friday, may provide further insight into the central bank's

likely rate-cut trajectory.

Super Micro Computer ( SMCI ) tumbled 24% after the AI

server maker said it would delay the filing of its annual report

for the fiscal year ended June 30, a day after Hindenburg

Research disclosed a short position in the company.

The market value of billionaire Warren Buffett's Berkshire

Hathaway ( BRK/A ) briefly surpassed $1 trillion, with the

conglomerate's class A shares last up 0.2%.

Declining stocks outnumbered rising ones within the S&P

500 by a 1.8-to-one ratio.