NVIDIA Plummets After Profit Warning, Downgrade, AAPL Rumors (NVDA)

Posted in pre-market 
July 29th, 2010

When it rains for NVIDIA Corporation, (NASDAQ: NVDA) it truly pours as a series of negative indicators have hit the graphics company, driving the stock down on heavy volume. At  8:24AM EDT, NVDA was down 6.67% to 9.46, well below the 52-week range of $9.90 - $18.96. At that time, the stock had already traded 221 thousand shares in volume, compared to an average of 20.6 million shares.

The reasons for this sell-off, which compounds a 3.15% loss from yesterday, are threefold. First, the company held a press conference after hours yesterday during which it announced it expected its 2Q earnings to be significantly worse than it initially predicted ($800-$820 million vs. $950 $970 million). This morning, British investment bank FBR Capital Markets cut NVDA to market perform, citing poor macro indicators. Meanwhile, rumors continue to circulate that Apple will be cutting the tech company’s graphics chips from its products sooner than expected.

-Michael B. Sauter

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