NVIDIA Corp shares fell 16% on Friday afternoon as investors remain cautious after the technology company reports a weaker than expected Q3 revenue.
NVIDIA Corp shares took a sharp fall on Friday, falling up to 16% just after midday. The fall comes after the American technology company posted weaker than expected Q4 revenue.
NVIDIA’s reported revenue for the third quarter of $3.18 billion, disappointing market analysts who expected $3.24 billion.
The chip maker’s fourth-quarter revenue guidance also fell short of expectations, at $2.70 billion. Nvidia reported earnings of $1.84 per share, excluding certain items.
NVIDIA’s outlook for the fourth quarter in 2019 also didn’t meet expectations, with a revenue expected to be $2.70 billion, gross margins at 62.3%, plus or minus 50 basis points, and GAAP and non-GAAP gross margins expected at 62.3%.
NVIDIA share fall put dents in chip sector
NVIDIA -- which makes computer chips and graphic cards—has influenced other tech-falls in Friday trading. Japan’s Nikkei fell as a result, with the Nikkei share down 0.3% at 21,733.17 points by Friday midmorning.
Analysts believe it started with Apple shares, then Nvidia, with performances computer tech companies setting the tone for the global tech and chip industries.
The contagion began with Daifuku Co -- which provides cleanroom automation systems-- falling 5% after the NVIDIA share fall, and after posted sales that missed expectations for Q3.
SoftBank Group Corp, was also affected, with investments in Nvidia. The company dropped 3.1 % upon the news.
KYB Corp, a maker of earthquake shock absorbers, also saw a share price drop of 10%, while un related to the NVIDIA share fall, still notable.