Nvidia Falls 4.4% as AI Stocks and Global Markets Retreat
Key Facts
Nvidia shares fell 4.4% in the October 22 session amid a global retreat in AI stocks, according to the Associated Press. The S&P 500 fell 1.2%, its worst daily performance since July, while the Nasdaq Composite dropped 2.6%. The agency said the sell-off in AI stocks weighed on global markets. Nvidia’s moves had the biggest impact on the S&P 500, according to the agency’s coverage. In the following session, EL7 closing data showed the stock at $210.96 on October 23.
The October 22 decline followed a session of gains on October 19, when Nvidia shares rose 1.4%, according to data cited by Kiplinger. The Nasdaq Composite rose 1.1% that day to 26,430 points. The S&P 500 also gained 0.4% to 7,690 points. EL7 closing data show Nvidia fell from $217.09 on October 19 to $210.96 on October 23. The stock’s weakness thus extended through the week’s sessions, following gains at the start of the week.
The stock’s volatility comes as the company reported revenue of $96.2 billion in the second quarter of its 2027 fiscal year. Revenue rose 106% year over year and 18% from the previous quarter, according to the company’s results. Net income was $59.688 billion, up 126% year over year. Data center revenue totaled $89.0 billion, up 117% from the same period a year earlier. Chief Executive Jensen Huang said "demand is accelerating" and "the buildout of AI infrastructure is at full throttle."
Nvidia forecast revenue of $108 billion, plus or minus 2%, for the third quarter of its 2027 fiscal year. The company said it had not included data center computing revenue from China in its forecast. In its disclosure, it said shipments of Hopper data center products to China accounted for less than 1% of second-quarter data center revenue. It also recorded charges of $0.4 billion in the first half of the fiscal year related to excess H200 inventory and purchase commitments, following a decline in demand for those products. These figures put the company’s outlook and business details at the center of investors’ focus on the stock’s performance.
On the economic calendar, the U.S. Census Bureau scheduled the advance report on September durable goods for October 27 at 8:30 a.m. The Federal Open Market Committee meeting begins on October 27 and runs for two days through October 28, according to the Federal Reserve’s schedule. The press conference is scheduled for October 28 at 2:30 p.m. The report is due a day before the meeting concludes, while the press conference coincides with its final day. Markets are watching these dates in a week that has seen a sharp retreat in AI-related stocks.