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Nvidia Stock Slides in September, Losing $176B Despite Standout Year

  • Nvidia shares have tumbled 10% this month, wiping $176 billion off its market cap
  • The stock is falling victim to the "September effect" where equities tend to struggle
  • Nvidia has still been the S&P 500's top performer this year, surging 189%
  • Analysts say Nvidia has benefited from booming interest in AI and dominance of GPUs
  • The chipmaker became a trillion-dollar company in 2023 and posted standout earnings
businessinsider.com
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Investors expect Nvidia to forecast quarterly revenue above estimates due to the success of AI apps, but any lower forecast could trigger a stock decline, potentially impacting the broader market.
Nvidia's bloated valuation and high price-to-earnings ratio poses a threat to the stock market, as investors may realize the company is not as strong as perceived, leading to a potential sell-off that could affect the entire market.
Shares of NVIDIA Corp. fell 2.77% as the stock market experienced a poor trading session, with the S&P 500 Index dropping 0.28% and the Dow Jones Industrial Average falling 0.51%.
Nvidia's impressive second quarter earnings have further solidified the bullish trend for AI-related cryptocurrencies, causing tokens such as FET, GRT, INJ, RNDR, and AGIX to surge by over 4% in the past 24 hours.
Nvidia's sales continue to soar as demand for its highest-end AI chip, the H100, remains extremely high among tech companies, contributing to a 171% annual sales growth and a gross margin expansion to 71.2%, leading the company's stock to rise over 200% this year.
Investors with short positions on Nvidia lost $826 million as the chipmaker's shares surged following a strong revenue forecast, resulting in total paper losses of $11.36 billion for this year.
Nvidia's stock has boomed this year, driven by the company's success in AI technology and the increasing demand for generative artificial intelligence, making it one of the most sought-after AI stocks and leading the S&P 500 with a market capitalization of over $1 trillion.
C3.ai stock is declining due to the impact of Nvidia's strong second-quarter results, leading investors to worry about the future performance of AI stocks.
Despite Nvidia's strong earnings, stocks closed lower due to mixed economic signals and the decline of big tech stocks such as Tesla and Amazon.com. Investors are awaiting Jerome Powell's speech for insight into interest rates, while the 10-year Treasury yield climbed and Dollar Tree's stock fell.
Nvidia's automotive revenue has declined by 15% due to lower overall auto demand, particularly in China, where excess inventory and downward sales forecasts are affecting the market.
Chip stocks, including Nvidia, experienced a selloff in the technology sector despite Nvidia's strong performance, leading to concerns that spending on AI hardware may be affecting traditional chip companies like Intel.
Nvidia's strong growth potential and their ability to adapt to a slowing economy make them a key player in the stock market.
Nvidia plans to buy back billions of dollars in stock, signaling a potential trend that could boost the stock market.
The performance of Nvidia stock has been impressive, but other retailers have struggled, leading to concerns about the economy, such as credit card delinquencies, falling home sales, weakening manufacturing, and tightening lending standards. These factors suggest that a recession may be looming.
Nvidia stock is currently at its cheapest since January, before it experienced a 250% rally.
Nvidia's earnings beat Wall Street estimates by 29.7%, but investors were not rewarded as the stock price declined, highlighting the difficulty of making money from actual events.
Nvidia stock is expected to more than double over the next 12 months, with analysts predicting a potential price target of over $1,000, thanks to the company's strong performance driven by AI and a reasonable valuation. However, challenges such as export restrictions to China and emerging competition may pose obstacles for the company.
Nvidia reported a strong quarter, with beats across three out of its four businesses, driven by strong demand for its data center segment and generative AI products, leading to record revenues and beating market consensus by 22%. However, there are concerns about the sustainability of this growth and the potential impact of competition in the future.
Nvidia's stock is trading at its lowest forward earnings multiple in eight months, despite strong quarterly results and a surge in demand for its chips due to the artificial intelligence boom.
Nvidia stock is approaching its all-time high, but there are three reasons to believe it has reached a plateau.
NVIDIA's Q2 earnings showed high growth and a positive outlook, but the AI hype may be fading, and the stock's valuation is overstretched, leading to a recommendation to sell with a potential 40% decline in the next three months.
Nvidia shares reached a record high and a $1.2 trillion market capitalization for the first time, putting them on track for their best year ever, after the company's blowout earnings report impressed investors.
Nvidia's stock slips after reaching a record high, but analysts suggest that the chip maker may still be a bargain.
Nvidia's market cap rose in August due to strong profit forecasts, while other tech giants like Apple and Microsoft saw declines, and Berkshire Hathaway and Tencent had mixed performances.
Semiconductor stocks, particularly Nvidia, have outperformed the market due to the high demand for chips in AI applications, making Nvidia the better AI stock to buy compared to Intel.
Nvidia's dominance in the computer chip market for artificial intelligence has led to a significant decline in venture funding for potential rivals, with the number of U.S. deals dropping by 80% from last year. The high cost of developing competing chips coupled with Nvidia's strong position has made investors wary, resulting in a pullback in investment.
Nvidia stock is continuing its losing streak, with shares set for a fifth consecutive day of declines, marking the longest losing streak since December.
Nvidia has tripled its stock so far in 2023, but it is not among the best performing stocks of the year, as Carvana, MoonLake Immunotherapeutics, IonQ, and others have outperformed it.
Nvidia stock has experienced a pullback along with other chip makers, but analysts remain positive and predict a significant upside potential for the company, particularly in the AI space, with an average 12-month price target implying a 55.14% increase.
Nvidia has experienced strong growth in its data center segment, driven by increased demand for its GPUs, leading to significant revenue growth and beating analyst expectations in the second quarter of fiscal 2024; however, concerns about competition and market share have caused the company's stock price to decline.
Nvidia's stock has been booming as it dominates the artificial intelligence market, but there are concerns about potential hype and the sustainability of its growth.
Investors should still support Nvidia stock despite its recent loss of momentum, as the launch of its next generation of graphics-processing units could trigger a new rally.
Wall Street is concerned about the possibility of a market bubble in gains related to artificial intelligence, but experts believe that Nvidia stock is not at risk of a dot-com style collapse similar to that of Cisco.
Big technology stocks had a bad September and they could keep dragging on the wider market unless they deliver some good news, but Nvidia and IBM stocks could provide the boost that the tech sector needs.
KeyBanc Capital Markets predicts that despite the downturn in the semiconductor industry, Nvidia and Intel are still performing well.
Chip stock Nvidia is down over 2% in trading due to investor concerns about its expanding involvement in cloud services and increasing competition from tech giants like Amazon, Alphabet, and Microsoft, who are developing their own chips to challenge Nvidia's dominance in artificial intelligence.
Nvidia's stock price increased by 1.2% in the most recent trading session, outperforming the S&P 500, and analysts expect the company to post year-over-year earnings growth of 472.41% in its upcoming earnings report.
Nvidia's stock rose 1.5% after an analyst maintained an Outperform rating and increased the price target, suggesting further gains could be on the horizon, but bearish traders may short the stock at the upper trendline.
Nvidia Corporation is expected to outperform the S&P 500 in the next few years, with its dominance in CUDA, the shift to accelerated computing, and strong EPS growth making it a buying opportunity for the long term. Hedge fund manager Stanley Druckenmiller also holds Nvidia as his largest position, further supporting its potential.
Nvidia, the leading company in artificial intelligence (AI) chips, has emerged as the best performer in the stock market in 2023, with its stock price up 215% this year, driven by its revolutionary AI innovations and the immense potential of the AI market, despite concerns about its high valuation.
Nvidia's stock took a hit after the US government updated export controls on semiconductor capital equipment and AI chips to China, but analysts still believe that the setback will not have a significant impact on the company's financial results.