Nvidia Stock Falls 5% On Lowered Guidance

Shares of Nvidia (NVDA) are down 5% today after the chipmaker issued disappointing quarterly
revenue guidance.

Nvidia’s stock fell as much as 10% immediately after the company issued its latest earnings,
pulling down the stock of other chipmakers in the process. Shares of Advanced Micro Devices
(AMD) and Marvell Technology (MRVL) each fell more than 2% after Nvidia’s earnings were
released.

Nvidia blamed its deteriorating outlook on Chinese supply chain problems and the war in
Ukraine.

The shares of chipmakers have been battered this year amid soaring interest rates and
concerns about slowing economic growth that could leave semiconductor companies saddled
with excess inventories.

The Philadelphia Stock Exchange’s Semiconductor Index is down 27% this year compared with
a 17% decline in the benchmark S&P 500 index.

As the biggest U.S. chipmaker by market value and a key provider of semiconductors used in
data centers, Nvidia is seen as a bellwether for the industry.

However, despite the lowered guidance, Nvidia beat analyst expectations for sales and earnings
in its latest quarter.

The chipmaker reported earnings per share (EPS) of $1.36 U.S. versus $1.29 U.S. that was
expected on Wall Street. Revenue in the first quarter came in at $8.29 billion U.S. compared to
$8.11 billion U.S. that analysts had forecast.

Looking ahead, Nvidia said revenue for the current second quarter would be about $8.1 billion
U.S., which was less than analyst expectations of $8.54 billion U.S.

Prior to today, Nvidia’s stock was down 44% this year at $169.75 a share as investors move
away from fast-growing technology stocks in favor of safer bets during a period of high inflation.