Motley Fool

Why Nvidia Stock Keeps Dropping

Shares of semiconductor company Nvidia (NASDAQ: NVDA) dropped again on Monday — down 4.2% as of noon ET — its fourth straight down day in a row. There doesn’t appear to be any particular news behind today’s decline, at least not specific to Nvidia. Although high demand for high-end Nvidia graphics chips is generally good news for the company and its pricing power, the network notes that “semiconductors are beneath the hood of an increasing number of products,” but “things made with chips don’t just use one chip.” Thus, even a PC manufacturer lucky enough to get hold of all the Nvidia chips it needs might not be able to sell its PC if it can’t also get all the power control, memory, and other chips it also needs to build the product.

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