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Tech Winners & Losers: Nvidia

Priya Ganapati

Tech stocks were mostly down Thursday in a shortened trading session, with graphics chipmaker Nvidia(NVDA Quote) leading the fall after it cut its financial forecast for the current quarter.

Nvidia shares plunged $5.58, or 30.9%, to $12.45 after it cut its financial forecast for the current quarter, and said defects in certain graphics chips would result in at least $150 million in charges. Nvidia also said its gross margin would be lower than previously indicated. The announcement led two analysts, from Goldman Sachs and Citi Investment Research to cut their price target on the stock.

Shares of Yahoo!(YHOO Quote) were up for the second day following a Wall Street Journal report that Microsoft may be still interested in buying the company. Microsoft had offered $31 a share for Yahoo, which was rejected by the latter. Buyout negotiations between the two companies fizzled out last month. Yahoo! gained 46 cents, or 2.2%, to $21.34.

The news also took a toll on rival chip stocks. Intel(INTC Quote) was down 28 cents, or 1.3%, to $20.65, while AMD(AMD Quote) lost 12 cents, or 2.2%, to $5.32.

Metro PCS(PCS Quote) was down $2.14, or 12.5%, to $15.04 after it released its second-quarter subscriber results. The company said it added about 184,000 subscribers, up from 155,000 a year ago, but described the quarter as seasonally slow. Analysts had been expecting at least 194,000 new subscriber additions. At the end of the second quarter, Metro PCS had a total of 4.6 million subscribers.

Metro PCS' numbers dragged down rival Leap Wireless(LEAP Quote). Shares of Leap shed $4.21, or 10.3%, to $36.46.

Video-games publisher Take-Two Interactive(TTWO Quote) lost 54 cents, or 2.2%, to $23.80 on concerns whether Electronic Arts(ERTS Quote) will actually acquire the company. EA has offered $25.74 a share for Take-Two, but the bid has been rejected by the latter on the belief that it undervalues the company. EA made its bid for Take-Two in February and currently has a tender offer open for Take-Two shares. Meanwhile, hedge fund SAC Capital reported Wednesday that it had cut its stake in Take-Two to 4.4% from 5.3%.