Nvidia (NVDA) Shares Fall Amid Concerns Over Rising AI Spending
TLDR
- Nvidia shares remained under pressure during Wednesday’s premarket trading.
- The company lost an estimated $237.9 billion in market value across Monday and Tuesday.
- Nvidia’s Data Center business generated $75.2 billion of its $81.6 billion first-quarter revenue.
- The company expects second-quarter revenue of about $91 billion, excluding China data center compute sales.
- SK hynix shares fell after its record quarterly profit missed market forecasts.
Nvidia (NASDAQ: NVDA) shares moved lower in Wednesday premarket trading as investors continued to reassess the chipmaker’s valuation. The decline followed a volatile start to the week and kept attention on the cost of artificial intelligence projects.
The stock closed Tuesday at $197.01, up 0.25%, after falling 4.99% on Monday. It remained 4.75% below Friday’s close of $206.84. Based on 24.2 billion shares outstanding, Nvidia lost about $237.9 billion in market value across the two sessions.
Nvidia Shares Face $238 Billion Valuation Loss
The estimated loss was about 4.7 times Nvidia’s latest quarterly operating cash flow. The figure excludes Wednesday’s premarket move and assumes the company’s share count remained largely stable.
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