NVDA Stock Price: Nvidia extends losses after Bitcoin’s overnight flash crash

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.

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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.

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