- Shares in Nvidia (NASDAQ:NVDA) closed at their lowest point since Feb. 8, down 7.8% after a long afternoon slide following its suspension of self-driving tests, coming in the wake of Uber's fatal accident.
- Analysts were largely sanguine about the move, with Rosenblatt calling the suspension a "tempest in a teapot," and Citigroup (NYSE:C) saying the pause creates a "reflection period" but isn't about readiness or malfunction in its hardware.
- B. Riley FBR says today's sell-off showed an "overly discounted" effect on revenue and reputation risk, and that investors should recognize Nvidia's approach as prudent and the right move. The decline discounted the loss of about $840M in sales at current multiples, analyst Craig Ellis says, which equals 195% of estimate fiscal 2020 auto segment sales. (h/t Bloomberg)
- Shortly after announcing it was suspending its real-world testing, Nvidia introduced its DRIVE Constellation simulator to test autonomous vehicles in virtual reality. The company says the photorealistic sim is "safer" and "more scalable" as a method of moving toward the goal of bringing self-driving cars to roads.
- NVDA is up 0.6% after hours.
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Original article