How Low Will Nvidia Stock Go?
Another month, another round of bad news for Nvidia (NASDAQ: NVDA). Shares of the top semiconductor company are now down nearly 60% from all-time highs as of this writing after it was revealed that the U.S. government has restricted the company from selling some of its most advanced AI chip designs to China. Nvidia said this could hurt its sales by $400 million next quarter, adding yet another headwind to the cyclical downturn Nvidia is experiencing.
Let's talk about that cyclical downturn because Nvidia is historically just that: a cyclical business. Not for the first time, the company is up against a decline in sales -- some of it driven by chip industry issues and some of it internal as Nvidia revamps its product lineup. With this downturn just getting started, how much lower can Nvidia stock go? Let's look at the possibilities.
Nvidia's woes right now are significant, perhaps even more pronounced than during the last downturn in 2018 and 2019. Recent news isn't just a second shoe dropping, it's more like another set of shoes dropping as Nvidia faces a run of bad press. Here's the list of headwinds it's dealing with now that it also faced a few years ago:
Source Fool.com
