Apple takes hit after Nvidia cuts guidance
Shares of Nvidia tanked as much as 17 percent at the market open Monday after the company lowered its revenue guidance for the fourth quarter citing “deteriorating macroeconomic conditions, particularly in China.”
The warning adds Nvidia to a growing list of U.S. companies facing revenue challenges in China. Apple issued a rare revenue warning earlier this month following slowdowns in the Chinese market, and construction machinery company Caterpillar pointed to lower demand in China in its earnings report Monday morning. A flood of tech earnings reports kicks off this week.
My take: Apple issued its own warning nearly a month ago, but be prepared for its shares to take fresh hits with each new warning as the Chinese slowdown ripples though Apple’s supply chain.