Why Nvidia Stock Dropped Today After Record Earnings
Specialty chip maker Nvidia (NASDAQ: NVDA) just closed out a record year with its fiscal fourth-quarter 2022 revenue showing strength in several of its target growth markets. But after the stock gained 125% in 2021, investors are feeling the report wasn't enough. Nvidia shares are down about 16% so far in 2022, including a 7.3% drop today, as of 11 a.m. ET.
While the company is working to grow its omniverse business in professional visualization and its automotive exposure, Nvidia's gaming and data center sales still made up over 87% of total revenue. Those two segments also both realized record annual sales, growing 61% and 58%, respectively, over the prior year. But investors seem to be focusing on management's expectations for gross margin to remain flat in the current quarter.
Source Fool.com
