Disappointing quarterly revenue outlook for nvidia Shares of Corp tumbled as much as 10 percent and shares of other major chip makers slid.
Advanced Micro Devices Inc. And Marvell Technology is among stocks that fell more than 2% in after-market trading after Nvidia’s forecast, which the company blamed on supply chain problems from China and the war in Ukraine. Other losers include Micron Technology Inc. and Western Digital Corp.
The chipmaker’s shares have been hit this year by rising interest rates and concerns about slowing economic growth that could threaten to leave semiconductor companies saddled with excess inventories. The Philadelphia Stock Exchange’s semiconductor index is down 27% this year compared to a 17% drop for the S&P 500.
As the largest US chip maker by market value and a major supplier of semiconductors used in data centers, Nvidia is seen as an industry benchmark. The Santa Clara, California-based company helped spark a broader recovery in March when it pledged to use free cash to maintain growth with new products rather than pursue more aggressive share buybacks.
The decline could affect chip makers, along with worse-than-expected results from cloud computing company Snowflake Inc. Wednesday night, on technology stocks after the big tech weight of the Nasdaq 100 index rebounded from a new low of the year during the session.
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