Why Nvidia Fell 16.9% in August
Shares of the largest chipmaker by market cap, Nvidia (NASDAQ: NVDA), swooned 16.9% in the month of August, according to data from S&P Global Market Intelligence.
Like many other technology stocks, Nvidia had a nice July rally. However, the picture darkened significantly in August. Early in the month, Nvidia warned investors its second-quarter earnings would come in below expectations, especially its graphics segment. When it reported later in August, management guided for an even worse third quarter.
Beginning earlier this year, there has been a big pullback in personal computer sales, as well as a crash in cryptocurrency prices. That has led to a glut of Nvidia graphics chips on the market and at distributors, causing a big decline in Nvidia's graphics segment last quarter.
Source Fool.com
