Nvidia (NVDA) Falls Nearly 4% Wednesday: Here’s Why
It has been a rather interesting month for the US stock market. Indeed, Wall Street has struggled to find momentum while navigating increased macroeconomic pressure and geopolitical uncertainty. That being said, Nvidia (NVDA) dropped as much as 3.8% on Wednesday as the stock struggled for a rather unrelated reason.
The drop reinforces the concerning predicament that Nvidia finds itself in this year. The stock is a long way from its 174% jump that it enjoyed over the course of 2024. Although it remains a top AI stock, its undeniable value has faltered as the market has slowed exponentially this year.
Also Read: Nvidia (NVDA): Expert Calls Stock a Long-Term Play Despite 2025 Struggles
Nvidia Falls Again This Week as Market Conditions Continue to Take Its Toll
The US stock market has been through a tough go this week as Wall Street attempts to maneuver around ongoing predicaments and uncertainty. For the first time since 2022, the economy has contracted, with US President Donald Trump’s first 100 days being detrimental to the market.
That has been only part of the story for Nvidia, as the tech giant fell as much as 4% on Wednesday with the stock market dipping yet again. Specifically, the drop had a lot to do with one of its biggest customers. Moreover, it is still forced to contend with ongoing chip restrictions that the Trump administration is looking to introduce.
Also Read: Nvidia (NVDA) Is Top Stock in This $68B Market Amid 120% Upside
According to a report, Nvidia customer Super Micro Computer (SMCI) has cut its revenue and profit outlook for Q3. Moreover, the decision affects NVDA because it uses those designs for its data center operations. The decision reflects a wider pullback from AI infrastructure demand amid the current market sentiment.
Super Micro stock fell 18% early Wednesday as news hit. Now, Nvidia has dropped firmly below the $110 level, as the stock has continued its 23% fall over the last six months. It still holds a $160 median price target for the next year’s outlook, with experts still believing in its 50% upside.
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Nvidia (NVDA) Falls Nearly 4% Wednesday: Here’s Why
It has been a rather interesting month for the US stock market. Indeed, Wall Street has struggled to find momentum while navigating increased macroeconomic pressure and geopolitical uncertainty. That being said, Nvidia (NVDA) dropped as much as 3.8% on Wednesday as the stock struggled for a rather unrelated reason.
The drop reinforces the concerning predicament that Nvidia finds itself in this year. The stock is a long way from its 174% jump that it enjoyed over the course of 2024. Although it remains a top AI stock, its undeniable value has faltered as the market has slowed exponentially this year.
Also Read: Nvidia (NVDA): Expert Calls Stock a Long-Term Play Despite 2025 Struggles
Nvidia Falls Again This Week as Market Conditions Continue to Take Its Toll
The US stock market has been through a tough go this week as Wall Street attempts to maneuver around ongoing predicaments and uncertainty. For the first time since 2022, the economy has contracted, with US President Donald Trump’s first 100 days being detrimental to the market.
That has been only part of the story for Nvidia, as the tech giant fell as much as 4% on Wednesday with the stock market dipping yet again. Specifically, the drop had a lot to do with one of its biggest customers. Moreover, it is still forced to contend with ongoing chip restrictions that the Trump administration is looking to introduce.
Also Read: Nvidia (NVDA) Is Top Stock in This $68B Market Amid 120% Upside
According to a report, Nvidia customer Super Micro Computer (SMCI) has cut its revenue and profit outlook for Q3. Moreover, the decision affects NVDA because it uses those designs for its data center operations. The decision reflects a wider pullback from AI infrastructure demand amid the current market sentiment.
Super Micro stock fell 18% early Wednesday as news hit. Now, Nvidia has dropped firmly below the $110 level, as the stock has continued its 23% fall over the last six months. It still holds a $160 median price target for the next year’s outlook, with experts still believing in its 50% upside.
Read More