Nvidia (NVDA) stock sank 7% on Tuesday as the overall market declined on the first trading day of the month.
The AI chip maker was the worst performer among the “Magnificent 7” stocks, falling to its lowest level since mid-August.
“I don’t think it’s down on isolation, lots of things are down today,” Stacy Rasgon, Bernstein senior analyst, told Yahoo Finance Live on Tuesday morning.
Technology (XLK) stocks led the declines as investors rotated into defensive sectors like Staples (XLP) and Utilities (XLU).
Tuesday’s decline comes less than a week after Nvidia posted quarterly results that beat consensus estimates but failed to send the stock price higher.
“The print was actually very good. The issue people had on it was not so much the revenue, it was the gross margins. They’re guiding gross margins down a little bit into the end of the year,” said Rasgon.
Nvidia is expected to ramp up…
