Despite posting solid earnings and guidance last week, NVIDIA's (NASDAQ:NVDA) stock continues to see significant selling pressure Monday as margin, Singapore issues, and other worries weigh.
Shares were down 8.4% shortly after 3 PM ET on Monday and 13% since reporting earnings last Wednesday after the close.
Mizuho desk analyst Daniel O’Regan said these are the five concerns he is hearing that are weighing on the stock today:
1) Tougher China restrictions: Our team led by Vijay Rakesh highlighted concerns about potential for meaningful new China AI and export license restrictions after recent nominations in the Commerce Department. He noted a ban could remove $4-5B or up to $0.18 from FY26 estimates.
2) Singapore Investigations: Singapore is investigating whether Dell (NYSE:DELL) and Super Micro servers shipped to Malaysia contained Nvidia chips barred from China, highlighting the role of middlemen in funneling high-end semiconductors.
3) The Trendforce story from earlier "NVIDIA’s CoWoS Orders Reportedly Face Decline Concerns as Hopper Ends, Market Awaits GB300 Boost."
4) Earnings - Last week's Rev and Margin guidance continue to weigh on sentiment
5) Lack of catalysts... Nothing until GTC in a few weeks.
NVIDIA stock is now down 7% year-to-date and is weighing on the chip index and S&P 500.
