Nvidia shares nosedive

Graphic chip firm takes 13 per cent hit, its worse loss in over three years
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Shares in graphic chip firm Nvidia fell by 13 per cent yesterday – the most dramatic one day loss the company has felt in more than three years, reported Reuters.

The stock hit comes amongst rising fears of the strength of Intel, which is pushing further into the graphics chip market and traditional rival ATI, and also follows the chipmaker’s recent report of a weakening of gross margin.

"The revenue guidance was better than expected, but the issue is operating expenses are going to be much higher than expected," said Blake Fischer from analyst firm Stiefel Nichlas. "The company has been in the past very adamant on their ability to leverage gross margin, and Nvidia has now started to back away from that a bit."

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