Why Nvidia Stock Is Sliding Today

Nvidia Corp. NVDA shares were seen extending their losses on Wednesday.

What Happened: The retreat came as investors reacted to the graphics chip giant's filing for a mixed shelf offering to raise up to $10 billion. The securities the company intends to offer include common stock, preferred stock, depository shares representing preferred stock, debt, warrants, stock purchase contracts and stock purchase units.

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While there was no word from the company regarding the potential use of the net proceeds, investors began speculating that the company could consider acquiring an AI or software company or even look to vertically integrate and buy a foundry.

A company spokesperson reportedly said the proposed offering will replace a shelf offering from March 2020 that expires soon.

Price Action: In premarket trading, Nvidia shares were slipping 0.82%, to $230.25, according to Benzinga Pro data.