Nvidia continued to slide as much as 8 percent Monday before settling down around 6.5 percent. The chip-maker fell as much as 19 percent Friday after missing on revenue and guidance in its third-quarter 2019 earnings report.
Nvidia was just one of several tech stocks that dipped Monday, including the FAANG stocks, some of the largest on the Nasdaq. Facebook, Apple, Amazon, Netflix and Google parent company Alphabet all slid during early trading and the Nasdaq Composite Index was down 1.6 percent.
Nvidia missed revenue expectations of $3.24 billion per Refinitiv, with the company recording $3.18 billion for the quarter. CEO Jensen Huang said on a call with analysts following the report that surplus inventory contributed to lower-than-expected guidance for the next quarter, which Nvidia estimated will be $2.70 billion, plus or minus, 2 percent, excluding certain items. Analysts were expecting $3.40 billion, according to the Refinitiv consensus estimate.
One of Nvidia’s top competitors and the best performing tech stocks of the year, Advanced Micro Devices, also continued to slide Monday. The stock was down as much as 6 percent in early trading.