Shares of NVIDIA, the American developer of graphics processors, fell 3.9% to $174.51 on the NASDAQ exchange on Wednesday, August 27. The main session among NVIDIA shares ended almost unchanged at $181.6 per share (-0.09%).
As a result, in the additional session, the company’s capitalization decreased by more than $170 billion, from $4.43 trillion to approximately $4.25 trillion.
In the previous trading session of the NASDAQ exchange on Thursday, August 28, the shares fell by another 1.6%. They were trading at $178.69 at 12:25.
The sale began after the publication of NVIDIA’s report and the company’s forecasts for the current quarter.
The world’s most valuable chipmaker beat analysts’ expectations last quarter and forecast third-quarter revenue above Wall Street estimates. But slowing data center revenue growth and a lackluster outlook for new chip supplies to China sent shares down, Reuters reported.
The sales forecast for the current quarter was modest, though still strong in absolute terms and slightly above analysts’ estimates. It also disappointed investors accustomed to impressive results, the agency said.
The chipmaker forecast third-quarter revenue of $54 billion, plus or minus 2%, compared with the average analyst estimate of $53.14 billion, according to LSEG.
NVIDIA CEO Jensen Huang said he is awaiting approval to resume sales of the company’s chips in China after reaching an agreement with US President Donald Trump to pay commissions to the US government.