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.

Stocks Reporter FXStreet

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.

Stay up to speed with hot stocks' news!

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.

Nvidia stock forecast

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.

Like this article? Help us with some feedback by answering this survey:

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Stocks Reporter

FXStreet

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD eases to near 1.1650, eyes US PCE for fresh impetus

EUR/USD turns south to test 1.1650 in European trading on Friday, facing rejection once again near seven-week highs. The pair, however, continues to draw support from persistent US Dollar selling bias, despite a cautious market mood. Traders now await the US September PCE inflation and UoM Consumer Sentiment data.

GBP/USD holds gains near 1.3350 ahead of US data

GBP/USD sticks to a positive bias near 1.3350 in the European session on Friday. Traders prefer to wait on the sidelines ahead of the key US inflation and sentiment data due later in the day. In the meantime, broad-based US Dollar weakness helps the pair stay afloat.

Gold remains below $4,250 barrier as traders await US PCE data for directional impetus

Gold gains some positive traction on Friday, though it remains confined in the weekly range. Dovish Fed expectations continue to undermine the USD and lend support to the commodity. Bulls, however, might opt to wait for the US PCE Price Index before placing aggressive bets.

UoM Consumer Sentiment Index expected to post a mild recovery in December

December’s preliminary Michigan Consumer Sentiment Index is forecast to have picked up to 52 from a three-year low of 51.0 in November. A stalled labour market and higher price pressures are likely to weigh on consumers’ confidence.

Canada Unemployment Rate expected to edge higher in November ahead of BoC rate decision

Statistics Canada will release its Labour Force Survey on Friday, and markets are bracing for a weak print. The Unemployment Rate is expected to tick higher to 7% in November, while the Employment Change is forecast to come in flat after a nice gain in October.

Pi Network Price Forecast: Bearish streak nears critical support trendline

Pi Network (PI) edges lower on Friday for the third consecutive day, approaching a local support trendline. The on-chain data suggests an increase in supply pressure as Centralized Exchanges (CEXs) experience a surge in inflows.