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Nvidia continues to fall as much as 8 percent after revenue and guidance miss

Lauren Feiner
  • Chip-maker Nvidia continued to slide Monday as the tech sector extended its decline from last week.
  • The drop for Nvidia follows a 19 percent dip on Friday after it delivered its third-quarter 2019 earnings report.
  • Nvidia missed analyst expectations on revenue and guidance.

Nvidia NVDA continued to slide as much as 8 percent Monday before settling down around 6.5 percent. The chip-maker fell as much as 19 percent Friday after missing on revenue and guidance in its third-quarter 2019 earnings report .

Nvidia was just one of several tech stocks that dipped Monday, including the FAANG stocks, some of the largest on the Nasdaq. Facebook FB , Apple AAPL , Amazon AMZN , Netflix NFLX and Google parent company Alphabet GOOGL all slid during early trading and the Nasdaq Composite Index was down 1.6 percent.

Nvidia missed revenue expectations of $3.24 billion per Refinitiv, with the company recording $3.18 billion for the quarter. CEO Jensen Huang said on a call with analysts following the report that surplus inventory contributed to lower-than-expected guidance for the next quarter, which Nvidia estimated will be $2.70 billion, plus or minus, 2 percent, excluding certain items. Analysts were expecting $3.40 billion, according to the Refinitiv consensus estimate.

One of Nvidia's top competitors and the best performing tech stocks of the year, Advanced Micro Devices AMD , also continued to slide Monday. The stock was down as much as 6 percent in early trading.

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