Why Nvidia Stock Dropped Again Today
Nvidia (NASDAQ: NVDA) dropped in Monday trading, falling by 4.1% through 2:15 p.m. ET in response to continuing despondent news about the state of the semiconductor industry.
Reuters reported over the weekend that the ongoing conflict in Ukraine will almost certainly disrupt supplies of neon gas, which is vital for the manufacture of semiconductor chips. That sounds like it should be good news for Nvidia because if there are continued constraints on semiconductor supplies, that should push prices -- and profit margins -- higher. On the other hand, if input costs rise for Nvidia, that would squeeze its profit margins.
Image source: Getty Images.
Source Fool.com
