Tech Stock Decline Grips ASX Following Nvidia Results; Healius Plummets 34.5%

Highlights:

• Australian shares are experiencing a downturn, with tech stocks leading the decline after the release of chipmaker Nvidia's results in the US.
• Energy and materials stocks, which initially gained ground in the morning, have retreated, trading largely flat by 2 pm.
• Tech stock decline has impacted several companies

In the final hours of trading, Australian shares are experiencing a downturn, with tech stocks leading the decline after the release of chipmaker Nvidia's results in the US. The S&P/ASX 200 is 0.1% lower, and the All Ordinaries is down 0.2%. Despite Nvidia surpassing analyst expectations, tech stocks are down 1.4%, reflecting concerns about the company's Q4 growth outlook not meeting investors' lofty expectations in the AI sector.

Global Influences on Tech Stocks:

Nvidia's third-quarter revenue rose by 34% to AU$27.7 billion, exceeding analysts' expectations of AU$16.2 billion. However, the company's Q4 revenue outlook of AU$20.00 billion, plus or minus 2%, fell short of the high hopes investors had for the AI boom, contributing to the tech sector's decline.

Market Trends in Other Sectors:

Energy and materials stocks, which initially gained ground in the morning, have retreated, trading largely flat by 2 pm. Utilities are the best-performing sector, up 0.6%, boosted by a 1% gain in takeover target Origin Energy. Healthcare mega-caps CSL and Cochlear, each with a 1% gain, are helping offset the tech rout.

Stock Movements:

Tech stock decline has impacted several companies:

• Healius plunged 34.5% to AU$1.20 after completing a AU$154 million share offer.
• Praemium is down 22% at 45¢, citing a weak outlook for the first half of FY24.
• EBOS' AU$3.75 billion deal to acquire Greencross has fallen through, causing a 3.3% slip to AU$33.85.
• Bubs has halted shares for a capital raise to fund US expansion.
• Lovisa is 1.4% lower at AU$18.01 due to declining sales in the first half of FY24.
• PEXA shares slipped 5.6% to AU$11.46 as CEO Glenn King highlighted a mixed economic outlook in Australia.
• Nufarm shares trade ex-dividend, down 1.3% at AU$4.52.

Conclusion:

The tech stock downturn, influenced by Nvidia's results, is a notable trend on the ASX today, impacting various sectors and prompting investors to closely watch central bank statements and individual company performances.

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