Nvidia’s stock price dropped 5.7% on Thursday, bringing its year-to-date decline to over 17%. The decline is attributed to concerns about spending cuts in AI technology and a general selloff in the tech sector, which saw the Nasdaq 100 fall 2.8%. The wider Composite index also fell 2.6%.
However, Nvidia’s CEO and founder of GraniteShares, Will Rhind, suggests that the decline may be an opportunity to buy shares at their lowest valuation in a while. He attributes the decrease to macro considerations, including uncertainty around tariffs and trade policy.
Rival chipmakers also faced significant declines. Broadcom fell 6.3%, Micron dropped 5.4%, and Advanced Micro Devices lost 2.8%. Marvell Technology’s shares plummeted almost 20% after disappointing earnings guidance. ON Semiconductor fell 5.6% after Allegro MicroSystems rejected its unsolicited acquisition offer.
Other tech giants also experienced declines, with Meta falling 4.4% and Amazon declining 3.7%. However, Apple and Google parent Alphabet saw smaller losses. MongoDB’s shares plunged 27% after issuing weaker-than-expected earnings guidance, further exacerbating the market’s downturn.
Source: https://qz.com/nvidia-falls-correction-nasdaq-bleeds-tariff-war-1851768225