NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) sharp drop on Thursday saw almost US$200 billion wiped off the company’s value.
Shares fell 6.4% throughout the day, following post-market earnings on Wednesday night, taking Nvidia’s market capitalisation near US$200 billion lower to US$2.89 trillion.
Though the chipmaker had delivered the latest in a string of earnings beats, reporting a more than doubling of second-quarter revenue to US$30 billion, sky-high expectations still saw investors get cold feet.
Forward guidance for the third quarter laid out revenue of US$32.5 billion, with this below the top-end of market expectations.
Capital.com analyst Kyle Rodda noted the drop may well reflect an end to the “Nvidia mania,” after its rise in line with the AI boom has taken shares 2,700% higher in the last five years and up 144% since January.
“The drivers of the company’s fundamentals are better understood,” he said, “reducing the distribution of outcomes for the stock price and making it easier for analysts to model and markets to price in the future”.