Due to high market expectations… ‘AI chip leader’ Nvidia stock price 3%↓

(San Francisco = Yonhap News) Correspondent Kim Tae-jung = The stock price of Nvidia, the leader in artificial intelligence (AI) chips, fell nearly 3% on the 29th (local time), the day after the earnings announcement.

At 11:49 a.m. ET (8:49 a.m. ET), Nvidia’s stock price was trading at $121.55 (162,147 won), down 3.23% from the previous day, according to the New York Stock Exchange.

It once fell below the $120 level, but is currently holding the $120 level.

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As share prices fell, market capitalization (USD 2.987 trillion) also fell below USD 3 trillion.

Today’s decline was interpreted as the market’s failure to meet higher expectations, despite earnings announcements that beat Wall Street expectations the day before.

Nvidia announced the day before that both second-quarter sales ($30.04 billion) and earnings per share ($0.68) beat Wall Street expectations. Expected sales ($32.5 billion) for the third quarter were expected to exceed Wall Street forecasts.

However, as sales fell short of market expectations compared to previous performance and the gross profit ratio in the third quarter was lower than market expectations, an analysis showed the company “failed to make a deep impression on investors.”

However, the decline was significantly reduced despite being intraday, compared to a plunge of 7% in after-hours trading following the previous day’s earnings announcement.

Reuters analyzed that “some losses were recovered as investors remained confident about growth prospects despite forecasts falling short of high expectations.”

In addition, US economic indicators such as the number of new unemployment insurance claimants and second-quarter gross domestic product announced today also dampened the decline in Nvidia’s stock price.

This is because concerns about a rapid cooling of the US job market have been eased and the US economy is shown to be strong.

Accordingly, excluding NVIDIA, the top companies by market capitalization are Apple (2.31%), Microsoft (2.08%), Alphabet (1.27%), Amazon (1.67%), Meta (1.46%), and Tesla (2.53%). Big tech stocks all rose more than 1% in the ‘cent 7’.

taejong75@yna.co.kr

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Sent 2024/08/30 01:25