Why Did Nvidia Shares Drop 12% in September
Shares of Nvidia (NASDAQ: NVDA) fell 11.9% in September, according to S&P Global Market Intelligence. The chipmaker powerhouse suffered from a combination of troublesome rumors and difficult market conditions that weighed on semiconductor stocks and the tech sector in general. There wasn't major news about Nvidia last month, but its expensive valuation exposed the stock to volatility.
Nvidia shares charged higher after an excellent quarterly earnings report in August. Investors were wowed by the company's revenue growth, which exploded 101% over the prior year and 88% over the prior quarter. That crushed Wall Street's forecasts, which were already bullish as the semiconductor industry leaned into a cyclical recovery. Nvidia outpaced its peers thanks to surging demand for its products, which are widely used in artificial intelligence and data center applications. Those happen to be some of the hottest topics among investors right now.
Image source: Getty Images.
Source Fool.com
