NVIDIA Corp. stock falls Tuesday, underperforms market
Shares of NVIDIA Corp. fell 2.77% as the stock market experienced a poor trading session, with the S&P 500 Index dropping 0.28% and the Dow Jones Industrial Average falling 0.51%.
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Nvidia's bloated valuation and high price-to-earnings ratio poses a threat to the stock market, as investors may realize the company is not as strong as perceived, leading to a potential sell-off that could affect the entire market.
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Nvidia shares rose 6% as the company exceeded expectations for Q2 earnings, with revenue of $13.51 billion and a forecast of $16 billion for Q3 driven by strong sales of its graphics processing units (GPUs) and generative AI.
Nvidia's stock rose 5% after the company reported better-than-expected earnings, strong guidance for the upcoming quarter, and increased demand for its datacenter products.
Stocks fell on Thursday as strong earnings from Nvidia were overshadowed by comments from the Federal Reserve signaling that interest rates will remain elevated for a long time to combat inflation.
The Dow Jones Industrial Average fell after a surprise drop in initial jobless claims, while tech stocks, such as Nvidia, saw gains due to strong earnings results.
Investors with short positions on Nvidia lost $826 million as the chipmaker's shares surged following a strong revenue forecast, resulting in total paper losses of $11.36 billion for this year.
Stocks closed lower Thursday despite Nvidia's blowout earnings results, as new data brought mixed signals for the economy’s trajectory and big tech stocks like Tesla and Amazon.com dragged down major indexes.
Despite Nvidia's strong earnings, stocks closed lower due to mixed economic signals and the decline of big tech stocks such as Tesla and Amazon.com. Investors are awaiting Jerome Powell's speech for insight into interest rates, while the 10-year Treasury yield climbed and Dollar Tree's stock fell.
Shares of Walt Disney fell 3.9% to their lowest level in almost nine years as investors anticipate further price drops and scrutinize the company's turnaround plan after the announcement of price hikes, more ads, and cost cuts to boost the business.
Marvell Technology's stock fell nearly 9% after reporting data-center sales that fell short of Nvidia's impressive results, despite beating earnings expectations and offering an in-line forecast.
Nvidia stock is currently at its cheapest since January, before it experienced a 250% rally.
Nvidia's earnings beat Wall Street estimates by 29.7%, but investors were not rewarded as the stock price declined, highlighting the difficulty of making money from actual events.
Nvidia stock is expected to more than double over the next 12 months, with analysts predicting a potential price target of over $1,000, thanks to the company's strong performance driven by AI and a reasonable valuation. However, challenges such as export restrictions to China and emerging competition may pose obstacles for the company.
Nvidia's stock is trading at its lowest forward earnings multiple in eight months, despite strong quarterly results and a surge in demand for its chips due to the artificial intelligence boom.
Nvidia shares reached a record high and a $1.2 trillion market capitalization for the first time, putting them on track for their best year ever, after the company's blowout earnings report impressed investors.
Nvidia's shares reached a record high after the chipmaker announced its partnership with Google, while the court ruling against the SEC's denial of Grayscale's Bitcoin ETF provided a boost to cryptocurrency markets; however, economic data, including lower consumer confidence and a decline in job openings, raised concerns.
Shares of Cboe Global Markets Inc. fell by 0.12% as the stock market experienced an overall poor trading session, marking the stock's third consecutive day of losses.
Stock futures fell on Wednesday, with the S&P 500 and Dow Jones Industrial Average futures down 0.2% and 39 points respectively, following losses in the previous session, while Nasdaq-100 futures dropped 0.33%.
The Dow Jones Industrial Average fell 0.6% as major indexes tested their 50-day lines, while the S&P 500 and Nasdaq both experienced declines midday.
Shares of Netflix Inc. fell 0.65% on a rough trading session for the stock market.
Microsoft Corp. shares slipped 0.20% as the stock market experienced a rough trading session, with the S&P 500 and Dow Jones Industrial Average also falling.
Nvidia stock is continuing its losing streak, with shares set for a fifth consecutive day of declines, marking the longest losing streak since December.
U.S. stocks fell on Tuesday, with tech stocks dragging down indexes after Apple unveiled its latest iPhone and the Justice Department's antitrust case against Google went to trial in Washington. The Nasdaq sank 1%, while the S&P 500 fell 0.6% and the Dow Jones Industrial Average closed 0.1% lower.
Bank of America's stock fell 0.31% as the overall stock market had a mixed trading session, with the S&P 500 rising and the Dow Jones falling, ending a three-day winning streak.
Shares of Microsoft Corp. fell 2.50% as the stock market experienced a dismal trading session, ending its two-day winning streak.
Shares of Alphabet Inc. Cl A fell 0.51% as the stock market experienced a dismal trading session, although it outperformed some of its competitors.
India's benchmark stock indexes fell as investors reacted to economic developments in China and awaited policy decisions from major central banks, including the U.S. Federal Reserve. The Nifty 50 fell 0.09% and the Sensex lost 0.16%, potentially ending an 11-day winning streak.
Shares of Zoom Video Communications Inc. fell 1.83% as the stock market experienced a grim trading session, marking the third consecutive day of losses for the company.
Shares of Canopy Growth Corp. fell 11.54% after a rough trading session for the Canadian market.
Intel's stock drops as analysts express skepticism about the company's ability to compete with Nvidia in artificial intelligence.
Shares of Open Text Corp. fell 0.80% as the Canadian market declined, with the S&P/TSX Composite Index falling 0.02% and the company closing C$8.27 short of its 52-week high.
Nvidia, the semiconductor giant, has experienced a 10% decline in their stock this month, leading to a $180 billion decrease in market capitalization, attributed to the "September effect," although it remains the best performer in the S&P 500 due to the rise of AI and ChatGPT.