Nasdaq NVDA Nvidia

Wall Street benchmarks rose on Thursday, as investors reacted positively to the previous day's commentary from the U.S. Federal Reserve which hinted the central bank's aggressive pace of interest rate hikes could be tempered if growth suffered.

EU antitrust regulators are investigating the video licensing policy of the Alliance for Open Media (AOM), whose members include Alphabet unit Google, Amazon, Apple and Meta, the European Commission said on Thursday.

Wall Street's main indexes rose on Thursday on expectations the U.S. Federal Reserve would ease the aggressive pace of interest rate hikes later this year amid growing concerns of a recession.

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Investors in NVIDIA Corp (Symbol: NVDA) saw new options begin trading today, for the August 26th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the NVDA options chain for the new August 26th contracts and identified one put and one call co

Wall Street's main indexes rose on Thursday as investors scaled back expectations of how much the U.S. Federal Reserve will raise interest rates by amid growing concerns about a recession.

Wall Street's main indexes were set to open higher on Thursday as investors assessed the outlook for monetary policy amid growing concerns about an economic downturn following aggressive interest rate hikes to tackle inflation.

Shares of GameStop Corp rose nearly 5% in premarket trading on Thursday after the video game retailer announced a four-for-one stock split in an attempt to revive retail interest that has waned amid a market selloff.

It goes without saying that it has been rough sailing in the market year-to-date. Headline after headline has shaken the market back and forth, and not in the way that we hoped.

Nvidia (NVDA) closed the most recent trading day at $151.30, moving +1.11% from the previous trading session. This change outpaced the S&P 500's 0.36% gain on the day. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq lost 0.1%.

Semiconductor stocks have been down in the dumps this year amid the broader stock market sell-off, and it now appears that a potential slowdown in chip demand is going to further weigh on the sector.

The Federal Reserve has already raised interest rates three times this year in an effort to stamp out inflation, and it started reducing its balance sheet in June as another means of cooling the overheated economy. The central bank believes inflation, as measured by the price ind

As the calendar flips to July, the year is halfway over. While 2022 has been an abysmal year for the stock market, I'm still optimistic about a few companies.

Launched on 01/26/2004, the Vanguard Information Technology ETF (VGT) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the equity market.

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $1.1 billion dollar outflow -- that's a 0.4% decrease week over wee

Investors who got into the market for the first time in 2021 are finding out that stocks can fall sharply, even when there's no pandemic directly responsible for the sudden downdraft. Yet, the ill effects of COVID-19 are still lingering and remain an underlying cause for much of

The global markets are facing a volley of problems with ever-growing inflation, impending fears of recession, COVID-19 lockdowns in China, and the Ukraine-Russia conflict, which are spurring a major slowdown in overall consumer demand, especially in the electronic consumer market, causing a slump in sales of PCs, TVs, and smartphones.

As a result, technology companies across the globe, like Nvidia (NVDA), face concerns about order cuts for their GPU processors and other products. Shares have already lost half of their market capitalization over the past year.

Based in California, NVIDIA Corp. is a multinational technology company that designs and manufactures computer graphics processors, chipsets, and related multimedia software.

Lower Consumer Demand

Heightening the already worrisome fears of recession and reduced consumer demand, Micron Technology (MU) provided lackluster guidance for its fiscal fourth quarter at the end of last week.

This reaffirms the growing concern that semiconductor companies may soon see a cut in their orders for the chips due to a dip in demand for PCs and smartphones.

The change of fortune is in sharp contrast to peak pandemic times when industrial customers, as well as gamers and crypto miners, had to face waiting lists and lines to get their hands on the prized chips.

Now, NVIDIA and its peers are faced with falling demand while store shelves are brimming with supplies. Moreover, a sharp slump in cryptocurrencies means less and less demand for their mining.

A similar scenario may play out in the auto segment as well, as customers tighten budgets and vehicle sales moderate. Tesla (TSLA) has already announced actions to streamline its workforce, which could be a harbinger of things to come in this space.

While NVIDIA expects a $500 million impact on its second-quarter top line, the pain may persist in future periods as well. If crypto markets do not bottom out sooner, the impact on sales of mining equipment might get entrenched.

For Q2, NVIDIA already expects declines in gaming to offset gains from the data center as well as auto segments.

Wall Street’s Take

Last week, BofA Securities analyst Vivek Arya decreased the price target on NVIDIA to $220 (51.48% upside potential) from $270 and reiterated a Buy rating.

Consensus among analysts is a Strong Buy based on 26 Buys and four Holds. The average Nvidia analyst price target of $262.41 implies an 80.69% upside potential to current levels.

Insider Trading

According to the Tipranks Insider Trading Tool, insiders at NVIDIA are Negative about the stock’s near-term prospects and have sold stock worth $87.9 million over the last three months.

The most recent major Sell transaction was by Jen Hsun Huang, the CEO, President, and Director of the company, who sold NVIDIA shares worth $2.62 million last month.

Conclusion

While the near 52% price drop might be painful for NVIDIA investors, the stock is still up nearly 300% from its January 2019 levels.

As the pandemic era demand boom fades and new realities driven by the Fed's actions and crypto winter set in, investors may have to swallow more pain in the coming periods.

Disclosure

The semiconductor sector is in a sour mood as recession fears have mounted. Last week, news emerged that high-flying graphics chipmaker Nvidia (NASDAQ: NVDA) could see growth come to a halt in its large gaming segment.

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The stock market sell-off has been brutal and indiscriminate this year, with almost no industry spared the pain. But the technology sector is being particularly hard hit after being one of the best places to invest throughout the pandemic.