Nvidia Stock Is Sliding Today: What's Going On?

NVIDIA Corp NVDA shares are trading lower Wednesday, in sympathy with Micron Technology Inc MU, which fell after the company announced it's reducing DRAM and NAND wafer starts and working toward additional capex cuts.

What Happened: Micron said it will reduce DRAM and NAND starts by approximately 20% compared to fiscal fourth quarter 2022. Furthermore, reductions will be made across all technology nodes where the company has meaningful output. Micron is also exploring other capex cut opportunities. 

As a result of the aforementioned changes, Micron now expects its bit supply growth for DRAM to be negative year-over-year. The company anticipates that bit supply growth will be in the single-digit percentage range for NAND.

"Micron is taking bold and aggressive steps to reduce bit supply growth to limit the size of our inventory. We will continue to monitor industry conditions and make further adjustments as needed," said Sanjay Mehrotra, president and CEO of Micron.

"Despite the near-term cyclical challenges, we remain confident in the secular demand drivers for our markets, and in the long term, expect memory and storage revenue growth to outpace that of the rest of the semiconductor industry." 

What Else: Nvidia is set to announce its third-quarter financial results after the market close. The company is expected to report earnings of 69 cents per share on quarterly revenue of $5.77 billion, according to Benzinga Pro.

Credit Suisse analyst Chris Caso assumed Nvidia with an Outperform rating and announced a $210 price target ahead of the company's quarterly results.

See Also: Nvidia Stock Could Be Swept Away On Q3 Earnings As Technical Storm Casts Shadow On Semiconductor Names

NVDA Price Action: Nvidia has a 52-week high of $346.47 and a 52-week low of $108.13.

The stock was down 3.5% at $160.83 Wednesday morning.

Photo: courtesy of Nvidia.