Nasdaq NVDA Nvidia

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.

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Nvidia (NASDAQ: NVDA) is falling after memory chip manufacturer Micron Technology (NASDAQ: MU) reported a much weaker outlook than expected for its summer quarter. Micron said there's an oversupply of consumer electronics on the market, confirming worries that have been mounting

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What happened Shares of Nvidia (NASDAQ: NVDA) plunged this week after the company's stock received a price target cut, some analysts had a few negative comments about the chip market, and investors worried that comments made from another chip company about slowing demand might m