Nvidia lost $100 billion in value.
The Silicon Valley chip manufacturer cannot guarantee investors further growth as production faces issues, leading to a drop in stocks, reports The Financial Times.
Shares of Nvidia fell by 4% as recent earnings figures from the chip manufacturer did not meet the high expectations of the market. This led to a reduction in the market value of the Silicon Valley company, which had surged due to the popularity of artificial intelligence and spending on it, by approximately $100 billion.
This happened despite the company's revenue nearly doubling in the latest quarter.
In its recent results, published on Wednesday, the chip manufacturer stated that it expects third-quarter revenue of $32.5 billion, with a deviation of plus or minus 2%, slightly exceeding analysts' expectations.
On Wednesday, Nvidia tried to reassure investors that it would generate several billion dollars in revenue this financial year from its new powerful artificial intelligence chips, despite production issues.
Source: Economic Truth
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