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Nvidia stock tumbles from record high on news of possible US chip export cap, ASML’s dismal earnings

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Nvidia stock tumbles from record high on news of possible US chip export cap, ASML's dismal earnings


Nvidia (NVDA) stock sank 4.5% Tuesday, partially reversing its two week-rally and coming down from a record close the day before.

The stock’s tumble began before the market opened in response to a Bloomberg report that Biden administration officials are considering capping US chip exports to certain countries. Bloomberg, citing unnamed sources, reported that potential regulations would focus on Persian Gulf countries in the interest of national security.

The stocks of fellow chipmakers Advanced Micro Devices (AMD) and Intel (INTC) also fell on the news. Intel declined to comment on the report. Nvidia and AMD did not immediately respond to requests from Yahoo Finance.

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“While NVDIA has not disclosed its sales to the Gulf region, the level of investment in AI from that region has been very substantial,” DA Davidson analyst Gil Luria told Yahoo Finance. “More importantly, if the government continues to narrow the geographies chip companies can sell into, they are significantly narrowing the market for AI services for NVDIA customers Microsoft, Google and Amazon.”

Adding to the woes of chip stocks Tuesday was a dismal earnings report from semiconductor equipment supplier ASML (ASML). The Dutch company — which sells equipment to Nvidia’s chip manufacturer TSMC as well as Intel — reported booking orders worth just €2.6 billion ($2.8 billion) for the third quarter, far lower than the €5.39 billion forecast by Wall Street analysts tracked by Bloomberg.

The PHLX Semiconductor index (^SOX) fell 5.3% Tuesday, far underperforming the S&P 500 (^GSPC), which was down 0.7% at market close.

Nvidia’s decline Tuesday partially reverses a two-week winning streak that saw the stock rally to a new record closing price Monday, nearly eclipsing Apple (AAPL) as Wall Street’s most valuable company. Shares closed above $138 Monday, ahead of its previous record of $135.58 in June. Nvidia’s tear was fueled by industry leaders’ comments about intense demand for its AI chips and renewed bullishness over AI.

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Nvidia stock has been more volatile since its 10-for-1 stock split in June, and news of heightened trade tensions focused on the AI chip sector — which Nvidia leads — has pushed shares down various times over the past two years. For example, Nvidia shares experienced a similar decline this time last year — when the Biden administration tightened export controls on US chips — before extending its historic rally.

Nvidia office building in Santa Clara, Calif. (AP Photo/Jeff Chiu, File)

Nvidia office building in Santa Clara, Calif. (AP Photo/Jeff Chiu, File) (ASSOCIATED PRESS)

Despite Tuesday’s decline, Nvidia shares are up 190% from last year. While demand for its AI chips is strong in the near term, a potential slowdown in AI spending by Big Tech companies is another cause for concern to investors, in addition to geopolitical risks. DA Davidson’s Gil Luria recently told Yahoo Finance that AI spending could ease as soon as 2025, which would be bad news for Nvidia shares.

Nvidia is set to report earnings on Nov. 19. Wall Street analysts expect the company to report revenues of $33 billion, up 82% from the prior year, according to Bloomberg consensus estimates. Some 90% of Wall Street analysts covering the stock tracked by Bloomberg recommend buying Nvidia shares.

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Laura Bratton is a reporter for Yahoo Finance. Follow her on X @LauraBratton5.

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Nasdaq, S&P 500 sink as tech leads losses ahead of Tesla earnings

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Nasdaq, S&P 500 sink as tech leads losses ahead of Tesla earnings


Sales of existing homes fell in September as house hunters remained on the fence about buying a home despite mortgage rates easing during the month.

Existing home sales slipped 1.0% from August’s tally to a seasonally adjusted annual rate of 3.84 million, the National Association of Realtors said Wednesday. That marked the lowest rate since October 2010. Economists polled by Bloomberg expected a pace of 3.88 million in September.

On a yearly basis, sales of previously owned homes were 3.5% lower in September. The median home price rose 3.0% from last September to $404,500, marking the 15th consecutive month of annual price increases.

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“Home sales have been essentially stuck at around a 4 million-unit pace for the past 12 months,” NAR chief economist Lawrence Yun said in a press release.

There have been significant challenges that have weighed on sales activity, including a lack of inventory, escalating prices, and elevated mortgage rates. Last month, however, those factors turned around.

The Federal Reserve cut its benchmark rate by half a percentage point in September. While the central bank doesn’t set mortgage rates, its actions influence their direction of movement.

Mortgage rates hit the lowest level since February 2023 ahead of the Fed decision to ease, while listing inventory picked up.

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But overall, that hasn’t been enough to entice buyers.

“Some consumers are hesitating about moving forward with a major expenditure like purchasing a home before the upcoming election,” Yun said.



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Tesla stock jumps on Q3 earnings beat

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Tesla stock jumps on Q3 earnings beat


Tesla (TSLA) reported mixed third quarter results after the bell on Wednesday, but the stock jumped in after-hours trading as investors cheered the earnings beat, higher gross margins, and news that Tesla’s cheaper EV is on track for production next year.

For the quarter, Tesla reported revenue of $25.18 billion vs. $25.4 billion per Bloomberg consensus, higher than the $25.05 billion it reported in Q2 and also topping the $23.40 billion Tesla reported a year ago. Tesla posted adjusted EPS of $0.72 vs $0.60 expected, on adjusted net income of $2.5 billion and free cash flow of $2.9 billion.

The closely watched gross margin figure came in at 19.8%, much higher than the 16.8% expected.

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Tesla shares were up nearly 8% in after hours trade.

“We delivered strong results in Q3 with growth in vehicle deliveries both sequentially and year-on-year, resulting in record third-quarter volumes,” the company said in its earnings deck. “Preparations remain underway for our offering of new vehicles — including more affordable models — which we will begin launching in the first half of 2025.”

Earlier this month, Tesla (TSLA) announced third quarter deliveries that slightly missed expectations, sending the stock lower.

Tesla said it delivered 462,890 vehicles in Q3, up 6.4% quarter over quarter, to mark the first quarter of delivery growth this year. The numbers also came in ahead of the 435,059 EVs the company delivered in the year-ago period. But Wall Street had expected Tesla to deliver closer to 463,897, according to Bloomberg.

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“Refreshed Model 3 ramp continued successfully in Q3 with higher total production and lower cost of goods sold quarter-over-quarter. Cybertruck production increased sequentially and achieved a positive gross margin for the first time,” Tesla said in its report.

Tesla said it expects vehicle deliveries to achieve “slight growth” in 2024.

Ahead of Tesla’s Q3 disclosure, shares were down approximately 11% since Tesla revealed its robotaxi, dubbed the Cybercab, at its showy “We, Robot” event from the Warner Bros. studio lot in Burbank, Calif., on Oct. 10.

The debut and release of a cheaper EV is what many analysts and industry watchers believe will spur the next leg higher of EV sales, as even CEO Elon Musk has said before. During its Q2 report, Tesla and Musk said the company remains on track for the production of new vehicles, likely including a cheaper EV, in the first half of next year.

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Investors and analysts were left wanting more details from Tesla’s “We, Robot” event on the Cybercab itself and detailed testing plans, along with questions about the development of Tesla’s sub-$30,000 EV, dubbed the Model 2.



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Transak hit by data breach, 92K users exposed

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Transak hit by data breach, 92K users exposed


Transak disclosed a data breach affecting over 92,000 users after a phishing attack compromised an employee’s laptop.



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The Dow plummets more than 600 points and is on track for its worst day in more than a month

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The Dow plummets more than 600 points and is on track for its worst day in more than a month


The Dow Jones Industrial Average and other major indexes suffered a steep decline Wednesday afternoon as the yield on the benchmark 10-year U.S. Treasury note continued its upward climb, reaching 4.23%—a level not seen since July.

In the afternoon, the Dow dropped 631 points, or 1.4%, heading for its worst day in over a month. Meanwhile, the tech-heavy Nasdaq and the S&P 500 declined by 2.2% and 1.4%, respectively. However, there was some relief for investors as oil prices eased, with West Texas Intermediate (WTI) futures trading around $70.65 per barrel.

The Federal Reserve’s Beige Book, released in the afternoon, reported that economic activity remained largely unchanged across the 12 Federal Reserve Districts, with the Southeast significantly impacted by a harsh storm season.

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On Wednesday, all eyes are on Tesla (TSLA) as the company prepares to release its latest earnings report. Analysts expect earnings per share to be 60 cents, down from 66 cents a year ago but an improvement from 52 cents in the previous quarter, according to FactSet estimates. Revenue is projected to hit $25.4 billion, compared to $23.3 billion in the third quarter of 2023 and $25.5 billion in the preceding quarter.

Apart from Tesla, investors are closely monitoring earnings reports from other major corporations, including AT&T (T), Boeing (BA), and Coca-Cola (KO).

McDonald’s stock plunges over 5%

McDonald’s (MCD) shares took a sharp hit, falling over 5% after the Centers for Disease Control and Prevention (CDC) linked the chain’s Quarter Pounder burgers to an E. coli outbreak. The outbreak has led to 10 hospitalizations and one death, driving a significant decline in McDonald’s stock during the afternoon trading session.

As of now, 49 cases have been reported across 10 states between Sept. 27 and Oct. 11, with a majority of illnesses occurring in Colorado, Nebraska, Utah, and Wyoming. The CDC noted that most of those affected had eaten a Quarter Pounder. Investigators are working swiftly to identify the contaminated ingredient.

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Spirit Airlines stock soars 30%

After a failed attempt at merging with JetBlue (JBLU-0.80%), ultra-low-cost carrier Spirit Airlines (SAVE+28.01%) is reportedly turning back to a familiar partner. The Wall Street Journal (NWSA-0.34%), citing people familiar with the matter, reports that Spirit and Frontier Airlines (ULCC+3.05%) are in early talks over a potential merger. The news sent Spirit’s stock soaring nearly 30% on Wednesday.

–Francisco Velasquez and Rocio Fabbro contributed to the article

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Zanzibar’s new blockchain sandbox aims to drive tech startup growth

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Zanzibar’s new blockchain sandbox aims to drive tech startup growth


The semi-autonomous region of Tanzania is taking advantage of a sandbox regulatory framework adopted in July.



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Price analysis 10/23: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIB

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Price analysis 10/23: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIB


Bitcoin’s correction ignited selling in altcoins, which are slipping below critical support levels.



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