Shares of NVIDIA (NVDA) stock plummeted in the pre-market hours Monday following lowered Q4 guidance from the chipmaker. The company lowered revenue guidance to $2.2 billion, down from the previous $2.7 billion estimate and $2.71 billion Wall Street consensus. NVIDIA also lowered gross margin guidance to 55-57% from the previous guidance of 62-63%. Lower-than-expected sales of high-end gaming chips and a push to clear a backlog of mid-range inventory are largely to blame, with consumer demand on the decline.
NVDA stock is trading at $136.01 as of 1:05 PM on Monday, Jan 28, a drop of -$24.14, or -15.07% from the previous closing price of $160.15. NVIDIA stock has traded between $131.00 and $141.64 so far today. Volume today is high. So far 44,210,136 shares have traded compared to average volume of 16,218,324 shares.
Stock Score Report, InvestorsObserver’s proprietary scoring system gives NVDA stock a score of 30 out of a possible 100. That score is based on three component scores. A fundamental score of 86, a long-term technical score of 4 and a short-term technical score of 2. Our proprietary system combines short and long-term technical factors, Wall Street’s opinion, and other fundamental factors into an overall score that measures a stock’s suitability for investment.
Meanwhile, the major indices are lower. The S&P 500 is lower by -1.15% to 2,634.15. The Dow Jones Industrial Average has fallen -1.5% to 24,366.50. The NASDAQ is lower by -1.6% to 7,050.03.