Nvidia Stock Plummets $251 Billion After Revised Margin Forecast

Nvidia's stock price plummeted by 4.57% on Friday to close at $217.55, resulting in a staggering loss of around $251 billion from its market capitalization.

This significant drop came after the company's impressive earnings rally on Thursday, which saw Nvidia surge 8.74%. Despite this brief boost, the chipmaker's stock still managed to increase its market value by approximately $190 billion over the two sessions.

The mixed response from investors highlights the challenges Nvidia faces in exceeding expectations, with revenue growth remaining exceptional but profit sustainability under scrutiny.

Nvidia reported a 106% increase in quarterly revenue to $96.22 billion, with data-center revenue accounting for 92.5% of overall sales at $89.0 billion. The company's gross margin midpoint for the next quarter is down by 100 basis points from the most recent figure.