Why Nvidia Shares Fell Ahead of Earnings Today
Shares of semiconductor maker Nvidia (NASDAQ: NVDA) were dropping today ahead of the fiscal 2023 third-quarter earnings it will report after the closing bell on Wednesday. Nvidia shares fell nearly 5% earlier in the day, and were still lower by 3.4% as of 2:41 p.m. ET.
The drop isn't just due to the uncertainty surrounding that earnings report, though. The semiconductor sector overall is in the red today after Micron Technology announced that weaker demand has reduced its chip production plans by 20%. Investors might also be unsure what to expect from Nvidia later today, and some of the selling could be due to thinking that the more than 40% rise in its shares over the last month was too much, too fast.
Expectations are mixed for Nvidia, partly due to the previously announced license requirements imposed by the U.S. government that restrict some semiconductor chips from being sold in China. Nvidia initially said that could hurt sales in its quarterly period ended Oct. 31, 2022, by as much as $400 million.
Source Fool.com
