Nvidia Shares Drop 32% After Earnings Warning
Shares of graphic chip maker Nvidia Corp. plummeted 32%, setting a new 52-week low the day after the Santa Clara company issued a steep earnings warning for its fiscal second quarter.
Nvidia shares were down $5.15 to $11.07 on Nasdaq. Shares surpassed the previous low of $14.30, set Friday. The stock has fallen about 84% from its high of $72.66 in January.
Nvidia, the biggest seller of chips and related products that handle graphics on personal computers, had said it expected second-quarter sales of $410 million to $430 million, lower than analysts’ expectations of $567.9 million, according to Thomson First Call.
The company also disclosed that it would have a “significant” inventory write-down, which will result in the company being “at or above” break-even.
Analysts had expected the chip maker to earn 40 cents a share for its fiscal second quarter ending Wednesday.
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