Nvidia stock falls 6% into a correction as the Nasdaq bleeds
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Nvidia (NVDA-5.49%) stock fell 5.7% on Thursday, bringing its decline this year to more than 17% amid concerns about declines in spending on AI, amid a general selloff in that took the tech-centered Nasdaq 100 down 2.8%. The wider Composite index fell 2.6%.
“The decline in Nvidia’s stock price has much less to do with company fundamentals and much more to do with macro considerations, namely uncertainty around tariffs and trade policy,” Will Rhind, CEO and founder of GraniteShares told Quartz in an email.
“The company posted very strong Q4 earnings showing they remain at the forefront of the AI technology race.”
He suggested that if trade war discussions are mostly noise, this could be an opportunity to buy Nvidia shares at their lowest valuation in a while.
Rival chipmakers also fell, with Broadcom (AVGO-4.94%) plummeting 6.3% ahead of earnings, Micron (MU-5.00%) about 5.4%, and Advanced Micro Devices (AMD-2.65%) 2.8%. The U.S.-listed shares of Taiwan Semiconductor Manufacturing (TSM-4.07%) dropped 4.6%.
Marvell Technology’s (MRVL-19.55%) shares plunged almost 20% after the semiconductor company’s earnings guidance didn’t impress investors.
ON Semiconductor (ON-5.85%) fell 5.6% after Allegro MicroSystems called “inadequate” ON’s unsolicited acquisition offer of $35.10 a share in cash. Meanwhile, Allegro (ALGM+6.01%) gained 5.7%, going against the tide.
Outside of chipmakers, other tech giants also fell, with Meta (META-4.53%) down 4.4% and Amazon (AMZN-4.34%) declining 3.7%. The shares of Apple (AAPL-0.41%) and Google parent Alphabet (GOOGL-0.55%) fell by smaller amounts.
MongoDB’s (MDB-25.75%) shares plunged 27% after the database software company issued weaker-than-expected earnings guidance.
