Nvidia Stock Drops Around 25 Percent

There were many reasons why Nvidia issued a profit warning and these included a price war in the industry, a delay in new products being launched and weak demand.

The moment Nvidia announced expectations of lower revenues; their stocks plummeted as much as 25 percent. To make matters worse they have also said to expect a charge of around $200 million to cover the costs of defected Nvidia chips.

This charge will cover returns and repairs that have affected some laptop GPUs to overheat and fail. The lower profit has been predicted due to all the different factors and does not look like a long-term problem for Nvidia.

At first the Nvidia chipmaker was expected to make $1 billion in its second-quarter but this figure has now been taken down to around $875 million. Still not bad considering the current market and problems.

Source: Read