Nvidia Warning Shows That Tech is No Safe Haven in this Market

7/3 - "Nvidia (NVDA) is a name a few readers have nominated as we looked for some new names in the tech space - the stock was approaching a triple bottom in the $18s after starting the year in mid $30s (50% drop). However, last night after the bell we had some uninspiring news and the stock is down an additional 28% to near $13. And just like that someone can lose 2/3rds of their money in 7 months. But remember, "tech is safe" because it has no exposure to oil. This is a trecherous market - the indexes as bad as they are, are masking some of the carnage in individual names."

"The company blamed the worse-than-expected results on weak global demand, and delays in ramping its new integrated graphics chip...Goldman Sachs analyst James Schneider... cut his fiscal second-quarter gross margin forecast to 40 percent from about 46 percent, citing near-term pricing pressure."

"So again, "tech is safe" because it has no exposure to oil, yet it has exposure to producers and consumers which are slowing. But that's Wall Street logic for you."