Why Nvidia Stock Is Sinking Today
Nvidia (NASDAQ: NVDA) stock is getting hit with sell-offs in Thursday's trading. The company's share price was down 5.1% as of 2 p.m. ET amid a 2% decline for the S 500 and a 2.5% decline for the Nasdaq Composite.
Investors are selling out of artificial intelligence (AI) and semiconductor stocks today after Marvell Technology saw a big valuation pullback despite posting better-than-expected Q4 results and guidance. The negative reaction to Marvell's earnings report has spurred sell-offs for AI stocks, and Nvidia's share price is taking a hit as investors signal the need for higher growth to support valuation levels amid macroeconomic and geopolitical risk factors.
Marvell's non-GAAP (adjusted) earnings per share of $0.60 in the fourth quarter topped Wall Street's call for per-share earnings of $0.59, and sales of $1.82 billion exceeded the average analyst forecast by $20 million. But investors weren't satisfied with annual growth of approximately 27% for sales and 33% for adjusted earnings.
Source Fool.com
