From Nasdaq: 2024-08-06 08:42:00

NVIDIA Corporation (NVDA) stock has dropped over 21% in the past month, surpassing declines in the Computer and Technology sector and the S&P 500. The recent sell-off is attributed to macroeconomic concerns, U.S. restrictions on AI chip exports to China, and delays in delivering AI chips, affecting major customers like Microsoft and Amazon.

As NVIDIA’s stock falls below its 50-day moving average, concerns over its valuation arise, with a high price-to-sales ratio compared to industry peers. Despite short-term challenges, NVIDIA remains strong with impressive revenue growth and optimistic long-term projections, driven by its leadership in GPUs for gaming, data centers, and the metaverse.

Analysts project significant revenue and earnings growth for NVIDIA in fiscal 2025, but caution investors to wait for a more favorable entry point amidst product delays and high valuations. While the stock remains a strong contender, potential buyers should consider waiting for dips to avoid overpaying for future growth.



Read more at Nasdaq: NVIDIA (NVDA) Plunges 21% in a Month: Should You Buy the Stock?