“Our near-term results reflect excess channel inventory post the crypto-currency boom, which will be corrected. Our market position and growth opportunities are stronger than ever. During the quarter, we launched new platforms to extend our architecture into new growth markets – RAPIDS for machine learning, RTX Server for film rendering, and the T4 Cloud GPU for hyperscale and cloud,” said Jensen Huang, founder and CEO of NVIDIA.
Nvidia stock was down 19.20% to $163.52 per share as of 9:35 a.m. Friday in New York. Goldman Sachs analysts scrapped Nvidia from its conviction stocks list saying, “We were clearly wrong on the stock. Buy-rated on the stock as our view that Nvidia has access to one of the best growth opportunity sets in Semis and that it has a sustainable competitive lead within remains unchanged.”
Nvidia selloff brought down shares of other semiconductors with Advanced Micro Devices Inc shares tumbling 4 percent, while Applied Materials lost more than 3 percent. Shares of Micron Technology also sank in sympathy after the company too issued downbeat guidance late Thursday.
The S&P 500 dropped 4 points early in the session to hit 2,725 while the Dow Jones Industrial Average Index lost 47 points to 25,241.
NVIDIA Corp. Company Profile
NVIDIA Corp. engages in the design and manufacture of computer graphics processors, chipsets, and related multimedia software. It operates through the Graphics Processing Unit (GPU) and Tegra Processor segments.
The GPU segment comprises of product brands which aims specialized markets including GeForce for gamers; Quadro for designers; Tesla and DGX for AI data scientists and big data researchers; and GRID for cloud-based visual computing users.
The and Tegra Processor segment integrates an entire computer onto a single chip, and incorporates GPUs and multi-core CPUs to drive supercomputing for autonomous robots, drones, and cars, as well as for consoles and mobile gaming and entertainment devices.
The company was founded by Jen-Hsun Huang, Chris A. Malachowsky, and Curtis R. Priem in January 1993 and is headquartered in Santa Clara, CA. – CNN Money