NVDA Stock News: Nvidia tumbles as market sell off intensifies following Fed rate hike
- NASDAQ:NVDA fell by 7.33% during Thursday’s trading session.
- NVIDIA investors took pause following AMD’s impressive earnings.
- NVIDIA unveils its new VR glasses for the Metaverse.
NASDAQ:NVDA showed that even the largest and most influential companies are not immune to a bearish market crash. On Thursday, shares of NVDA dropped by 7.33% and closed the trading session at $188.44. Despite the relief rally during Wednesday’s session, there was no carry over capitulation on Thursday for Cinco de Mayo. All three major indices sank lower for the worst overall session since March of 2020. The Dow Jones plummeted by 1,063 basis points, the S&P 500 dropped by 3.56%, and the NASDAQ tumbled by 4.99% during the session.
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Following the impressive earnings report from rival AMD (NASDAQ:AMD), NVIDIA investors took pause on Thursday to digest the earnings. NVIDIA should pay particular attention to the progress that AMD has made in the data center and gaming markets. NVIDIA’s data center segment has provided nearly 50% of the company’s total revenues from last quarter. While Goldman Sachs reiterated its buy rating for AMD, Morgan Stanley paused and gave NVIDIA an equal weight rating. There is also overall sentiment from investors and analysts that NVIDIA’s stock is simply too expensive and that a weaker than expected quarter might result in the stock’s multiple being slashed.
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NVIDIA did unveil a prototype for some VR holographic glasses that it has designed in partnership with Stanford University. The ultra-thin design is proposing to replace the bulky headsets from companies like Meta Platforms (NASDAQ:FB). This is still just a concept model, but NVIDIA is clearly gearing up for the launch of the Metaverse and has Meta Platforms in its sights.
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