Nvidia’s stock price has fallen by more than $1,000, or nearly 15 per cent in just three days, as investors take a hit from a weak earnings report and a report that the company is in talks to buy up to 60 per cent of its rival.
NVIDA stock has fallen in more than 80 per cent this year.
The company reported Thursday that it had sold 2.4 million of its stock, which it bought in August.
Analysts polled by Thomson Reuters had expected Nvidia to sell more than 2 million shares.
Investors are looking for more than one stock to get a jump on the market.
The stock has been battered by news that Nvidia plans to buy out rival AMD for about $100 billion.
Nvidia shares have fallen nearly 70 per cent since mid-June.
The news was released on the same day that Nvidia posted its first quarterly loss in two years, and a record $2.2 billion in losses.
Nvidia stock is down more than 50 per cent so far this year and the company reported a $3.4 billion operating loss in its most recent quarter.
Investors who hold Nvidia stock are also losing money.
Nvidia has been one of the fastest growing technology companies in the world since it started selling graphics chips at the turn of the century.
Nvidia’s CEO, Jen-Hsun Huang, told investors in August that Nvidia has more than tripled revenue to more than US$30 billion.
That’s far more than Intel, which has been a big winner in the graphics market.
Investors have been buying Nvidia stock for the last decade, but the company’s stock has historically fallen when there is a good earnings report.
Nvidia posted $4.4bn in net income in the first quarter of 2018.
That beats analysts’ expectations of $3 billion.
Shares have fallen more than 20 per cent over the last year.
Nvidia is a tech company with a strong focus on autonomous driving, AI and virtual reality.
The new chipmaker says it is targeting $25 billion in revenue by 2020 and is developing a new chip that could be capable of rendering 3D images.
The chipmaker has had an aggressive strategy of making money by selling Nvidia’s chips to consumers for less than their competitors.
However, Nvidia has suffered losses in the last few quarters and is now facing growing competition from Intel.
The latest financial results showed that Nvidia’s revenue dropped by 3 per cent year-over-year in the quarter ended May, but it still had a profit of $11.3 billion, up from $10.7 billion a year earlier.
Investors bought Nvidia stock at the time, but have been left holding the bag because of Nvidia’s slow start to 2017.
It was not clear how many Nvidia shares are held by individuals.
The companies’ shares are traded on the Toronto Stock Exchange under the ticker symbol NVIDC.