Nvidia Stock Analysis as Intel, Google, and Amazon Stocks Plunge After Earnings

Nvidia stock cratered to its lowest level since August 3 and 14.4% from its highest point this month, continuing a sell-off that has been going on since October 6. This sell-off accelerated as concerns about artificial intelligence (AI) rose, with companies like Intel, Google, and Amazon falling after their earnings.

Intel Stock Plunges After its Earnings

Nvidia stock dropped after Intel published its earnings report, which showed that its revenue continued growing last quarter. Its revenue rose by 21% to $16.5 billion, with its earnings-per-share rising to 52 cents.

The challenge, however, is that the company’s PC business continued to experience weakness during the quarter. Its client computing and physical AI revenue dropped by 5% to $8.1 billion. The company also pointed to the ongoing supply chain issues.

In the aftermath, the stock plunged to $70, its lowest level since April 23. It has dropped by 50% from its highest level this year, meaning that its valuation has slumped by billions of dollars.

Intel’s earnings and the eventual retreat of its stock are important for Nvidia for two main reasons. First, since Nvidia is usually one of the last tech companies to report earnings, these results serve as barometers. For example, Nvidia may face these supply chain issues.

Second, Nvidia is the largest holder of its own shares, with a stake worth $19.7 billion. The other big holders are companies like BlackRock, Vanguard, and State Street, which own it through their ETFs and mutual funds. As such, the 20% plunge means that the value of Nvidia’s shares has continued falling.

Amazon and Google Shares Plunged

Further, Nvidia shares plunged after results from some of its biggest customers, leading to a $750 billion wipeout in its market cap. Alphabet’s shares plunged by over 10% on Thursday, its worst day in years. The decline happened after the results showed that its core business was slowing, while its capital expenditure was continued to grow. It is spending $205 billion in capex this year and management expects the figure to continue rising next year.

Amazon, on the other hand, dropped by 7.30% in extended hours after the company published its financial results. The results showed that its core business was slowing down, with management continuing to spend on capital expenditure and R&D.

These results are important for Nvidia because these are some of its biggest customers. As such, if the stocks continue falling, there is a risk that they will start paring back some of their investments in the AI industry.

The next important catalyst for Nvidia shares will be earnings of top neocloud companies like CoreWeave, Nebius, and IREN. These results, in which Nvidia has a stake, will help to determine whether there is demand for its products.

Nvidia Stock Price Technical Analysis

The daily chart shows that the NVDA stock price has slumped in the past few weeks, moving from a high of $243 on October 5 to a low of $208 today. It has dropped below the 38.2% Fibonacci Retracement level.

The stock sits below the 50-day Exponential Moving Average (EMA). It has also slumped below the Supertrend indicator, a sign that bears are in control.

Therefore, the stock will likely continue falling as sellers target the key support level of $200. A move above the key resistance level of $220 will invalidate the bearish outlook and point to more gains in the near term.

This article is for informational purposes only and does not constitute financial advice. Equity investments carry market volatility and potential capital losses. Investors should conduct independent research before making decisions.