Nvidia stock dropped 7% due to CEO presentation and Apple using Alphabet's chips

From Nasdaq: 2024-07-30 18:40:00

Nvidia (NASDAQ: NVDA) stock fell 7% in Tuesday’s trading, driven by a “buy the rumor, sell the news” dynamic after CEO Jensen Huang’s presentations at the SIGGRAPH 2024 conference. Apple using Alphabet’s chips for AI models added to the sell-off, putting Nvidia stock down 24% from its high.

After a recent sell-off, Nvidia is trading at 38 times this year’s expected earnings and 21 times expected sales. The company has been posting strong sales growth and margins, with estimates of sales increasing 107% year over year. Nvidia’s next-generation Blackwell processor platform is expected to drive performance further.

Nvidia’s high volatility hasn’t deterred some investors, as the company’s valuation seems reasonable given its recent momentum and growth trajectory. With long-term tailwinds from AI, the chip specialist may continue to see strong performance and profitability, presenting a potential buying opportunity for long-term investors.



Read more at Nasdaq: Nvidia Sank Again Today — Time to Buy the Artificial Intelligence (AI) Growth Stock Hand Over Fist?