Nvidia's Forecasts Disappoint, Leading to Decline in Chip Stocks
Brief news summary
Nvidia's underwhelming forecasts have caused a premarket drop of 4.5% in its shares, resulting in a potential $150 billion loss in market value. This decline has had a ripple effect on chip companies and Asian tech stocks. Although Nvidia surpassed revenue and earnings estimates for the second quarter, its cautious outlook has overshadowed its success. This response may affect market sentiment, especially during this volatile time. Investors are also closely monitoring the U.S. employment report for any signs of improvement. Previously, Nvidia's success was driven by optimism in AI technology, but disappointing earnings from tech companies have shaken confidence in the rally. While Nvidia projects an 80% revenue growth for its fiscal third quarter, their adjusted gross margin forecast fell below market expectations. Despite the recent decline, Nvidia's stock is still up around 150% for the year, making it the top performer in Wall Street's AI rally.Nvidia disappoints investors with forecasts, causing chip stocks to decline. Nvidia's premarket trading dropped 4. 5%, potentially resulting in a $150 billion loss in stock market value. Other chip firms like Broadcom, Advanced Micro Devices, Arm, and Micron also saw a decrease of 1. 6% to 2% in their shares. TSMC, Nvidia's chip manufacturing partner, experienced a 2% decrease in U. S. -listed shares. The decline in Nvidia fell short of the 11% price swing that options market data had anticipated. Despite previously exceeding consensus analyst estimates, Nvidia's soft forecasts overshadowed a beat on second-quarter revenue and adjusted earnings, as well as a $50 billion share buyback.
As a result, market sentiment may be impacted, especially during September, a historically volatile period. Investors are also monitoring the upcoming U. S. employment report and expressing concerns about the increases in spending by major players like Microsoft and Alphabet in the race to dominate AI technology. Nvidia forecasts third-quarter revenue of $32. 5 billion, with estimated growth of 80% from the previous year. The company also expects an adjusted gross margin of 75%. Nvidia's stock, which has had significant growth this year, was valued at a lower price-to-earnings ratio compared to previous years.
Watch video about
Nvidia's Forecasts Disappoint, Leading to Decline in Chip Stocks
Try our premium solution and start getting clients — at no cost to you
I'm your Content Creator.
Let’s make a post or video and publish it on any social media — ready?
Content Maker
Last news
The Best for your Business
Hot news
AI and Mobile SEO: Optimizing for the Mobile-Firs…
As the digital landscape evolves, the shift of search engines toward mobile-first indexing has become a crucial change that businesses and website owners must address.
Deepfake Detection Advances with AI Video Analysis
In the ongoing struggle against misinformation, researchers have achieved significant progress by creating advanced artificial intelligence algorithms specifically designed to detect deepfake videos.
Microsoft promotes sales leaders as company pursu…
On Tuesday, Microsoft informed employees of the promotion of four sales executives, following its earlier decision to appoint Judson Althoff as CEO of its commercial business.
Artisan AI Raises $25M in Series A Funding to Dev…
Artisan AI, a San Francisco-based software company, has reached a major growth milestone by securing $25 million in Series A funding, reflecting strong investor confidence in autonomous AI applications for streamlining business operations.
Li Auto's OTA 7.4 Upgrade Begins: AI Assistant Ge…
On May 28, Li Auto, a leading company in the electric vehicle sector, officially announced the launch of its OTA 7.4 system upgrade.
Bluefish AI Raises $20M in Series A Funding to En…
Bluefish AI, a New York-based marketing technology firm, recently secured $20 million in a Series A funding round to expand its AI-driven search engine optimization (SEO) tools.
AI-Generated Videos Gain Popularity on Social Med…
Social media platforms are currently witnessing a significant rise in AI-generated videos, signaling a major shift in how users create and share content.
AI Company
Launch your AI-powered team to automate Marketing, Sales & Growth
and get clients on autopilot — from social media and search engines. No ads needed
Begin getting your first leads today
Your News is ready
Your article is ready
Lorem ipsum dolor sit amet consectetur adipisicing elit. Fuga dolor minus maiores. Aut vero expedita dicta, dolorem odit excepturi odio doloremque voluptatem repellat aliquam? Dolores nemo eum id pariatur! Nobis!
Generating video takes longer than text.
