- NASDAQ:NVDA fell by 3.21% during Friday’s trading session.
- The cryptocurrency markets tumble overnight as Russia threatens to pull out.
- Intel is making a major investment in US chip production.
NASDAQ:NVDA investors are getting used to seeing the colour red after a year in 2021 when all they saw was green. On Friday, shares of NVDA fell by 3.21% and closed the final trading day of the week at $223.74. Semiconductor stocks continued to get pummelled on Friday as analyst downgrades and general tech weakness continues to weigh on the sector. The NASDAQ index tumbled once again shedding 2.72% and moving it to over 14% off of its recent all-time highs. NVIDIA’s peers like AMD (NASDAQ:AMD) and Marvell Technologies (NASDAQ:MRVL) were also on the decline, shedding 2.53% and 1.69% respectively to close the week.
One reason why NVIDIA and other chip companies could be falling on Friday is the sudden flash crash of the cryptocurrency markets overnight. It is believed that the crash was caused by the Bank of Russia calling for a renewed ban on cryptocurrencies including mining and trading of the digital currencies. So far the crash in cryptos has wiped $1 trillion from the overall market cap, as Bitcoin lost more than 12% to fall below $36,000. NVIDIA’s GPU chips are widely used to mine cryptocurrencies, so another major market banning them could see a hit to NVIDIA’s revenues.
NVIDIA stock forecast
Another NVIDIA rival, Intel (NASDAQ:INTC), announced that it would be investing heavily into the US chip-making industry. The company plans to spend at least $20 billion into two new production plants in Ohio. Intel is trying to mitigate any future chip shortages which have had a significant impact on global production over the past two years. Shares of Intel were up early but closed the session unchanged.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.