Nvidia stock falls more than 5%, reversing Wednesday’s rally as chip stocks lead market lower

  • 📰 YahooFinanceCA
  • ⏱ Reading Time:
  • 39 sec. here
  • 4 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 63%

Nvidia News

Capital Expenditures,10-Year Treasury

Chip stocks led a tech-fueled sell-off.

"These hyperscalers... their capital expenditures are high and potentially even rising into 2025. So this bodes incredibly well for Nvidia,” said Harvest Portfolio Management co-CIO Paul Meeks on Thursday.Microsoft makes up roughly 19% of the AI chipmaker's revenue, according to Bloomberg data. This week the tech giant revealed capital expenditures of almost $56 billion for the full year ending June 30.

Social media giant Meta, which accounts for roughly 10% of Nvidia's revenue per Bloomberg data, said it expects to see "significant" capital expenditures growth in 2025 afterThe chip sector as a whole has benefited from the AI frenzy, but Nvidia is seen as the main beneficiary, up roughly 130% year-to-date. Rival AMD is down roughly 9% since the start of the year.

Morgan Stanley cited five main drivers of the recent decline in Nvidia — spending plans, competition, export controls, supply chain fears, and valuation worries — but said, "Through those concerns, the earnings environment is likely to remain strong, for Nvidia and for the whole AI complex."The company is set to issue its next quarterly report on Wednesday, Aug. 28.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 47. in AU
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Australia Australia Latest News, Australia Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock market news today: Stocks rally before Fed decision as Nvidia surgesA tech revival is helping lift stocks, with the Federal Reserve's rate decision on deck.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Stock market news today: Stocks rally before Fed as Nvidia surges 7%A tech revival is helping lift stocks, with the Federal Reserve's rate decision on deck.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »