The Biggest Loser on the S&P 500December 24, 2018
Nvidia is officially the worst stock on the S&P 500.
The one-time high-flier on demand for processors that could support artificial intelligence (AI) and cryptocurrencies plunged from a high of $290 to a low of $127, as of late December 2018.
Worse, it was in November that the company reported worse than expected revenue for the third quarter and weak guidance.
The company reported earnings per share of $1.84 for the third quarter. Analysts had been waiting for $1.71 a share.
Revenue at $3.18 billion was worse than the $3.24 billion expected.
“The crypto hangover has left the industry with excess inventory – excess channel inventory,” Nvidia CEO Jensen Huang noted.
“Q3 revenue reached $3.18 billion, up 21% from a year earlier, with all 4 of our market platforms growing double digits. Data center, professional visualization and automotive all hit record levels. However, gaming was short of expectations as post crypto channel inventory took longer than expected to sell through. Gaming card prices, which were elevated following the sharp crypto falloff, took longer than expected to normalize,” Nvidia’s chief financial officer, Colette Kress, said on the earnings call.