This is why the NVDA drop today, in fact, are all Chipmakers dropped too
Nvidia Stock Drops Again. Here’s What Is Dragging on the Chip Maker’s Shares
$NVIDIA Corp(NVDA)$
Dow Jones
42 minutes ago
Nvidia stock looked set for another tough trading session on Tuesday after investors spent the long weekend considering the chipmaker’sunderwhelming profit guidance.
The Magnificent Seven stock tumbled 7.5% in morning trading, compared with a 1% loss for the benchmark S&P 500. Other chip makers also dropped: Advanced Micro Devices slid 4.8%, Qualcomm fell 4.4%, and Broadcom was down 4.7%. Broadcom will release its quarterly earnings later this week.
The selloff looked like it was part of a rotation rather than being driven by anything specific to the chip sector. September tends to be a rough month for the stock market and investors appear to be in the mood to ditch equities ahead of a barrage of economic data.
They’re also digesting Nvidia’s latest earnings report, where the semiconductor giant beat analysts’ top-line expectations but issued a slightly underwhelming future outlook.
The report also flagged some production delays for its next-generation Blackwell chips, which are set to start shipping later this year.
Tesla CEO Elon Musk served up a reminder on Tuesday that demand for Nvidia’s current line of products remains strong, despite investors’ recent worries.
Musk said on Monday that xAI, the artificial intelligence start-up he founded in March 2023, had successfully brought its Colossus AI training infrastructure online after just 122 days.
He said in a post on X that the cluster, which is powered by 100,000 Nvidia H100 graphics processing units (GPUs), would be “the most powerful AI training system in the world,” adding that it would incorporate H200 chips to “double in size” in a few months.
xAI isn’t alone in inking a deal with the semiconductor giant. In January, Meta Platforms, Inc. CEO Mark Zuckerberg said the company plans to have bought billions of dollars worth of GPUs by the end of this year.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
#NVDA #amd #tsm #tsm #Intel #qcom #mu
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
