From Bloomberg, September 3, 9:27 AM:
Nvidia Corp. shares are tumbling and dragging the rest of the semiconductor complex down with it.
The chipmaker fell as much as 8.4% on Tuesday in the wake of its earnings report last week that failed to live up
to lofty expectations. The selloff erased more than $240 billion and helped fuel a 6.1% selloff in an index of 30 chip-related companies.
To Paul Nolte, market strategist and senior wealth manager at Murphy & Sylvest Wealth Management, Nvidia’s selloff is likely the result of post-earnings malaise, combined with a broader rotation into cheaper stocks.
Nvidia and AI stocks “have been the stars of the market for a while and it isn’t surprising to see them take a back seat for a while,” he said. “There’s still a big question about the ROI from all this spending.”
The drop in semiconductor stocks comes amid lingering questions about the sustainability of heavy spending on hardware used in artificial intelligence computing. Nvidia and other chipmakers have seen revenue surge amid heavy spending by companies like Microsoft Corp. and Alphabet Inc. But those buyers have showed relatively little revenue growth from the outlays and there’s concern about how long that can continue....
....MUCH MORE
The stock is down $8.91 (-7.46%) at $110.46 not much above the day's low at $109.39.
Also at Bloomberg, September 3:
S&P 500 Sees Biggest Slide Since August Meltdown: Markets Wrap
