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 & Digital Marketing Trends
The 'AI & Digital Marketing Trends' newsletter is becoming an essential resource for professionals aiming to stay updated on the latest advancements at the intersection of artificial intelligence and digital marketing.
Free AI News Video Generator: Text to Video News …
Vidnoz AI News Generator marks a significant breakthrough in news production technology, providing an innovative solution for creating high-quality breaking news videos with exceptional efficiency and versatility.
Leveraging AI for Advanced SEO Analytics and Repo…
In today’s highly competitive digital marketing environment, the importance of search engine optimization (SEO) is paramount.
Artificial Intelligence - AI Update, February 6, …
Here is a rewritten and summarized version of the selected AI news and developments over the past week, maintaining almost the same volume of information: Anthropic has launched Claude Opus 4
AI Video Recognition Enhances Security Systems
In recent years, security systems have advanced significantly due to the integration of artificial intelligence (AI) video recognition technologies, revolutionizing surveillance by enabling more precise identification of individuals and objects in video footage.
Google's AI Mode and Overviews Reshape Search Exp…
Google has unveiled two major innovations poised to revolutionize user interaction with search engines: AI Mode and AI Overviews.
Muster Agency: Leading AI-Powered Social Media Ma…
Muster Agency is quickly emerging as a leading figure in AI-powered social media marketing, offering a wide array of services designed to boost businesses’ online presence through cutting-edge technology.
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.
