Nvidia stock drops 13% due to chip stock declines, reports of stricter sanctions on China

From Nasdaq: 2024-07-21 09:41:00

Nvidia’s stock has dropped 13% due to declines in chip stocks like AMD, ARM, TSMC, and ASML Holding NV. Reports of stricter sanctions on China’s access to chips and a CrowdStrike outage exacerbated the sell-off. Despite falling prices, Nvidia’s P/E ratio has decreased offering attractive investment opportunities thanks to its role in tech and AI.

Amid rising U.S.-China tensions, tech stocks including Nvidia have taken a hit. Reports of potential restrictions on foreign-made products using American technology have raised concerns about the chip market supply chain. However, with new chip plants opening domestically, Nvidia’s business is likely secure in the long term despite recent geopolitical issues.

Nvidia remains a key player in the tech industry, dominating the AI market with an estimated 70-90% market share. Its hardware powers a range of industries from laptops to game consoles, e-commerce, and self-driving technology. The company’s prominent role in tech offers growth potential for investors, making it a solid long-term investment choice after recent price dips.

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Read more at Nasdaq: Is It Too Late to Buy Nvidia Stock in the Second Half of 2024?