Why Is Everyone Talking About Nvidia?
Plenty of tech companies have suffered significant share price declines in 2022 as high inflation has crimped consumer discretionary spending. As a result, the Nasdaq-100 Technology Sector index is down by 34% year to date.
While many companies are feeling the effects of slackening demand for technology, few of their stocks have fallen by as much as Nvidia (NASDAQ: NVDA). The graphics processing unit (GPU) leader's shares are 55% down since January as investors have responded to a host of headwinds.
In addition to declining sales in the global PC market, Nvidia has had to contend with changes to the cryptocurrency market that significantly decreased demand for its GPUs, as well as a U.S. ban on the export of some of its most powerful chips to China. And yet, despite all of Nvidia's troubles, many analysts continue to recommend its stock, touting it as a bargain.
Source Fool.com
