Nvda Market Cap Drops

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Nvda Market Cap Drops

Nvidia (Nvda) Market Cap Drops Under $3t

The decline in the Nvidia (NVDA) continues as the forecast for Q1 gross margin was below expectations. According to Nvidia (NVDA), its gross margin during the Q1 will be 71%.

That's lower than the Q4's gross margin of 73% and shows a slightly bearish trend in terms of revenue. According to JPMorgan, the firm is trying to scale the shipments of Blackwell higher and is spending more to get the systems to the customers as quickly as possible.

Investors Are Disappointed Over Gross Margin Forecast

As of now, the revenue of the Nvidia (NVDA) is around $39.3 billion while its EPS is $0.89. For the Q1 2024, the firm is expecting to have a revenue of $43 billion.

One analyst from Truist Securities added that the investors were not that interested in the recent results. This is a sign that investors now want something big from the Nvidia (NVDA).

Another expert added that the Q1 guidance was a little concerning. It also highlights that the firm is now facing more competition and a higher pricing pressure.

However, Nvidia (NVDA) will have to adjust itself as that's the future it will need to live in! However, the demand for the Nvidia (NVDA) products remains strong which is a key point for the company's stock.

An analyst from Bernstein believes that the reduction in the gross margin forecasts is just a minor nitpick. According to them, the company is now solely focusing on getting the products to the customers as the demand remains very high.

Amidst all of this, the market cap of Nvidia (NVDA) has slipped under the $3 trillion. This makes it behind the Microsoft and Apple.

However, the decline in the Nvidia (NVDA) isn't just a single case. Almost all the big stocks in the semiconductor sector are declining, such as SMCI, DELL, and so on.

But once the US Fed goes ahead with more rate cuts, it could prove to be a breathe of fresh air for the US tech stocks, including Nvidia.

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