Shares of Nvidia slid 3% Wednesday. Since the company reported earnings a week ago, the stock has been retreating. As of Tuesday's close, it was down about 7% over the past five days. The results exceeded Wall Street analysts' expectations, but they weren't enough to impress investors who have already priced in explosive earnings growth to the shares.
Nvidia has other things to worry about as well. President-elect Donald Trump is promising to raise tariffs on goods coming into the U.S., which could disrupt Nvidia's supply lines. Dell Technologies, a major Nvidia customer and a partner for some artificial intelligence products, is getting hammered after its earnings report on Tuesday even though orders for its servers hit a record.
Nvidia vies with Apple and Microsoft for the title of world's most valuable company by market capitalization. The crown is currently with Apple and its $3.6 trillion market cap, compared with $3.4 trillion for Nvidia and $3.2 trillion for Microsoft.
