2 Reasons to Buy Nvidia Stock Before It Skyrockets
2023 has been great so far for growth stock investors, who have seen top companies like Nvidia (NASDAQ: NVDA) recapture much of the previous year's losses. But with shares of the semiconductor leader still down 15% from an all-time high of $333, some investors are still in the red. Let's explore two reasons why the recovery might be far from over.
Nvidia's stock performed poorly in 2022, reflecting the macroeconomic challenges it faced in the period. Fourth-quarter revenue dropped 21% to $6.05 billion because of weakness in the gaming segment. Demand for consumer graphics cards is cyclical because they are non-essential luxury products that can be easily substituted with older models when money is tight. And right now, inflation is eroding gamers' purchasing power.
Nvidia's gaming chips are also used for cryptocurrency mining. And when this market tanked, it created a surplus of GPUs in the market -- leaving gamers spoiled for choice when upgrading their rigs.
Source Fool.com
