Nvidia's Chip Delay Pressure Shares to May Lows

Shares are on track for a third-straight loss

Fernanda Horner

Digital Content Manager

Aug 5, 2024 at 10:25 AM

Shares of semiconductor giant Nvidia Corp (NASDAQ:NVDA) are down 7.5% to trade at $99.26 at last check, after the company revealed over the weekend that its latest artificial intelligence (AI) chip will see a three-month delay, which may impact customers such as Meta Platforms (META) and Microsoft (MSFT).

A broader-market selloff is also dinging Nvidia stock, as recession fears plague Wall Street. The equity is on track for its third-straight loss and biggest single-day percentage loss since April, after gapping to its lowest level since May right out the gate, with added pressure from the 20-day moving average. NVDA maintains a 97.1% year-to-date lead, though.

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 50-day call/put volume ratio of 1.55 ranks higher than 92% of readings from the past 12 months. This indicates traders have been more bullish than usual in the last 10 weeks.

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