Why did Nvidia stock go down today? Blame the market, Micron (NVDA)

David Becker/Getty Images News Nvidia (NASDAQ:NVDA) shares closed down 7% to finish at $153.09 on Thursday as the broader stock market fell sharply following comments made by hedge fund manager David Tepper and the release of some strong economic data, along with a cautious outlook from industry stalwart Micron Technology (MU). Speaking on CNBC, Tepper, who runs Appaloosa Management and also owns the NFL's Carolina Panthers, said he was "leaning short" going into 2023, as central banks around the world are still in tightening mode as they try to clamp down on inflation. Some key economic data released on Thursday also suggested that the Federal Reserve may have to keep interest rates higher for longer than some expect, as initial jobless claims only rose 2,000 to 216,000, below the 222,000 that analysts were expecting.

The U.S. also released its final revision for third-quarter GDP, which showed a 3.2% rise in the closely watched measure, above the 2.9% estimate. On Wednesday, Micron (MU) reported fiscal first-quarter results that were slightly lower-than-expected, but issued an outlook for the second-quarter that was well below expectations.

It expects revenue to be $3.8B, plus or minus $200M, with a quarterly loss of 62 cents per share. Analysts were expecting revenue revenue of $3.84B and a loss of 32 cents per share. The company also said it cut almost 5,000 workers in the year ahead as it continued to conserve cash amid a weakening global economy.

Micron (MU) also said it is 'significantly reducing' capital expenditure for fiscal 2024. Earlier this month, investment firm Bernstein picked Nvidia (NVDA) among its top picks in the semiconductor sector going into 2023.