If investors realize that they have overreacted to the aforementioned uncertainties? We could see shares, alongside shares in other major Nasdaq 100 components, continue to bounce back, as they’ve been doing in recent days.Ĭonversely, if more bad news, whether on geopolitics, inflation or interest rates, comes about, then further weakness may lie ahead. In the short-term, the direction tech stocks move from here will largely dictate the next direction for NVDA stock. Yet the external factors that have affected its performance could continue to do so. Recent company-specific issues (scrapping Arm deal, cyberattack) may now be fully absorbed by the market. Long-term tailwinds will more than make up for the many headwinds that have knocked it lower in recent months. In fact, after its recent weakness, now may be the right time to enter/add to a position. However, while things haven’t been going Nvidia’s way, there’s no need to bail. Although this hacking incident is small potatoes in the grand scheme of things, it certainly didn’t do it any favors, as bullishness for shares continues to drop off.
This has happened all while the broader tech selloff has been going on.Īs you likely recall, the company had to scrap its deal to buy Arm due to regulatory issues.
If that’s not bad enough, the chip giant has had to deal with a few hiccups as well. The Russia situation has technically caused tech stocks to enter bear market territory. Inflation, interest rates and now the Russia-Ukraine war have caused tech stocks to tank. I’m sure you’re aware of the external factors bearing down on Nvidia.
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