NVDA

NVIDIA Corporation

127.44
USD
2.67%
127.44
USD
2.67%
122.14 346.47
52 weeks
52 weeks

Mkt Cap 310.33B

Shares Out 2.50B

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The Curious Reason Nvidia Stock Popped Today

What happened After going through a rough patch, shares of Nvidia (NASDAQ: NVDA) finally turned higher on Wednesday, gaining as much as 6%. When the market closed, shares were still up 5.9%. There's little doubt that the overall bullish market trend helped fuel its rise, but a curious catalyst appears to have helped boost shares: The semiconductor giant assured employees that it wasn't making any sweeping cuts in the wake of its difficult quarter. So what The economic uncertainty that has gripped corporations everywhere has resulted in a rash of slowed hiring, job cuts, and layoffs. Reports of slashed head counts have generally been followed by a declining stock price for the companies in question, as they're viewed as harbingers of pain to come. Not so for Nvidia. CEO Jensen Huang has sought to address the concerns of Nvidia workers. In what is purported to be a leaked company email, its chief executive assured employees that even though its second-quarter results were "significantly lower than anticipated," the company has no plans to discharge staff, according to Business Insider. "So what does this mean for us? Do we have a layoff? No. Instead, we have given raises to take care of your families as all of you are facing sky-high inflation," Huang wrote. "We will find and eliminate all wasted time, process, and material." He encouraged employees: "Take this opportunity to make Nvidia even faster, leaner, and agile." Now what This report comes on the heels of disappointing preliminary financial results released by the semiconductor specialist earlier this week. Nvidia said its second-quarter revenue of roughly $6.7 billion, while up 3%, would fall far short of the $8.1 billion it guided for just three months ago. Management noted that the shortfall was primarily the result of weaker-than-expected revenue in its gaming segment, which is now expected to generate $2.04 billion, down 33% year over year. The company said weak channel partner sales were likely the result of "macroeconomic headwinds." The issue was further exacerbated by discounts meant to clear excess inventory. Consumers have faced record-high inflation in recent months, so it isn't particularly surprising that chip sales might suffer. However, given the transitory nature of the issue, I think Nvidia stock is still a buy. 10 stocks we like better than Nvidia When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Nvidia wasn't one of them! That's right -- they think these 10 stocks are even better buys. *Stock Advisor returns as of July 27, 2022 Danny Vena has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

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