Why NVIDIA, Autodesk, and Wesco Aircraft Holdings Slumped Today
Wall Street was sharply mixed on Wednesday, reflecting a rotation among investors from one part of the stock market to another. High-growth tech stocks were particularly hard hit during the day's trading, but areas like financials and industrials fared much better, balancing the performance of the broader market. As the ebb and flow of progress in Washington over tax reform continued, some companies had to deal with difficult news that sent their shares lower. NVIDIA (NASDAQ: NVDA), Autodesk (NASDAQ: ADSK), and Wesco Aircraft Holdings (NYSE: WAIR) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Shares of NVIDIA fell 7% as the maker of graphics chips traded in line with several other players in the semiconductor space. The environment for chip stocks has been extremely favorable in recent years, with many companies taking advantage of cyclical upswings in prices for items like memory chips. NVIDIA has also gotten a particular boost from the rise of cryptocurrencies, because its chips are especially well-suited for cryptomining activities. Yet market participants apparently now believe that stocks like NVIDIA have seen gains come too quickly. Most dismissed the decline today as a natural pullback, and NVIDIA shares are still up more than 100% over the past year.
Image source: NVIDIA.
Source: Fool.com