On Wall Street, stock indices fell on Wednesday, and they are expected to fall again on Thursday as the business results of the world’s largest manufacturer of artificial intelligence chips, Nvidia, were not as impressive as investors had hoped.
The Dow Jones index weakened by 0.39 percent yesterday, to 41,091 points, while the S&P 500 slid 0.60 percent, to 5,592 points, and the Nasdaq index fell 1.12 percent, to 17,556 points.
The biggest drop in stock prices yesterday was in the technology sector as investors were nervous ahead of Nvidia’s business report release.
After the close of Wall Street, the chip manufacturer reported that it achieved revenues of $30 billion in the last quarter, about 120 percent more than in the same period last year, while its profit reached $16.6 billion, about $10 billion more than last year.
Although these results are better than analysts expected, Nvidia’s stock price fell about 7 percent after the report was released. It seems that investors were still hoping for better results.
As a result, futures stock indices are currently in the red, indicating that stock prices could also fall on Thursday. The futures S&P 500 index is currently down about 0.5 percent, and the Nasdaq about 0.9 percent.
In recent years, Nvidia has become synonymous with the euphoria surrounding the development of artificial intelligence. Due to the strong growth in demand for AI chips, Nvidia has recorded annual revenue growth of over 200 percent, with the company’s earnings also growing significantly.
Thanks to this, Nvidia’s stock price has risen nearly 3,000 percent since 2019, and the company’s market value has reached $3.2 trillion, making it, along with Apple, the largest company in the world by market capitalization. Since the beginning of this year, Nvidia’s stock price has risen about 150 percent, after recording a 240 percent increase last year.
On most European exchanges, stock prices rose yesterday. However, the London FTSE index weakened by 0.02 percent, to 8,343 points, while the Frankfurt DAX strengthened by 0.54 percent, to 18,782 points, and the Paris CAC rose by 0.16 percent, to 7,577 points.
