The owners of NVDA stock need to pay attention to other factors besides fading crypto demand specifically, the increased volatility of the broader markets might well be pointing to an approaching global slowdown. Could it be that these chip stocks have reached the peak of their valuations in the eyes of value investors? Or is another tech bubble about to burst? Worries About the Global Economy are Mounting

The shares of Nvidia’s competitors, such as Micron Technology (NASDAQ:MU) and Advanced Micro Devices (NASDAQ: AMD), have also had wide price swings, falling considerably without any substantial news. 2018, Wall Street has also been debating whether the semiconductor industry, which is highly competitive and cyclical, has entered a prolonged downturn. Since the beginning of the stock-market selloff in Oct. But Nvidia’s founder and CEO, Jensen Huang, in November optimistically noted that the excess channel inventory that NVDA had accumulated in the wake of the crypto-currency boom would soon ease. However, its results fell short of consensus expectations, and NVDA stock fell over 20% in after-hours trading and the next day.Īnalysts highlighted that the crypto craze, which waned in 2018, cannot be entirely relied upon to further boost Nvidia’s GPU business. Its revenue was $3.18 billion, up 21% from a year earlier. 15, its balance sheet was strong, while its revenue and margins had both increased. When Nvidia last reported its earnings on Nov. Clearly, investors are taking another look at the company’s fundamental growth outlook, which is based on its GPUs for gaming and artificial-intelligence servers. Over the past year, Nvidia stock is down over 40%. Gaming accounts for almost 60% of Nvidia’s total revenue. GPUs accelerate central processing units (CPUs), boosting the performance of video and graphics and improving computers’ overall performance.

Its graphics processing units (GPUs) have earned a superior reputation compared to competing GPUs, especially within the gaming industry. 25 - is now back around $135.ĭespite the stock’s decline this week, it might still be too early to early to get back into Nvidia stock, given its short-term risks that make it a highly volatile investment.Ī darling among investors over the past few years, Nvidia stock gets a lot of attention, compared with other chip stocks. NVDA stock - which had risen from the low of $124.46 it reached on Dec.

28, Nvidia Corporation (NASDAQ: NVDA) issued a stark earnings warning, spooking the broader indices that have rallied after the market selloff.

Nvda after hours trading