Nvidia falls 12 percent after revenue and guidance miss

Key Points
  • Chipmaker Nvidia continued to slide Monday as the tech sector extended its decline from last week.
  • The drop for Nvidia follows a 19 percent dip on Friday after it delivered its third-quarter 2019 earnings report.
  • Nvidia missed analyst expectations on revenue and guidance.
NVIDIA President and CEO Jen-Hsun Huang
Robert Galbraith | Reuters

Nvidia fell 12 percent by the end of trading Monday. The chipmaker fell as much as 19 percent Friday after missing on revenue and guidance in its third-quarter 2019 earnings report.

The stock lost close to half its value since its all-time high of $292.76 per share on Oct. 2. By Monday's close, shares traded at $144.70. Nvidia was just one of several tech stocks that dipped Monday, including the FAANG stocks, some of the largest on the Nasdaq. Facebook, Apple, Amazon, Netflix and Google parent company Alphabet all slid Monday, and the Nasdaq Composite Index closed down 3 percent.

Nvidia missed revenue expectations of $3.24 billion per Refinitiv, with the company recording $3.18 billion for the quarter. CEO Jensen Huang said on a call with analysts following the report that surplus inventory contributed to lower-than-expected guidance for the next quarter, which Nvidia estimated will be $2.70 billion, plus or minus 2 percent, excluding certain items. Analysts were expecting $3.40 billion, according to the Refinitiv consensus estimate.

One of Nvidia's top competitors and one of the best-performing tech stocks of the year, Advanced Micro Devices, also continued to slide Monday. The stock closed down as 7.5 percent.

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Nvidia in the penalty box for now
Nvidia in the penalty box for now