NVDA Stock Price: Nvidia resumes falling as JPMorgan prefers industry rivals

NASDAQ:NVDA quickly erased any gains it had made at the end of Wednesday’s session, as growth stocks went right back to tanking on Thursday. Shares of NVDA plummeted by 6.80% and closed the trading day at $283.87. NVIDIA has been one tech stock that has been beaten down over the past few weeks, as the stock valuations get trimmed after a substantial gain in 2021. The NASDAQ index itself dropped by a further 2.47% as the tech weakness continued following the speech from Federal Reserve Chairman Jerome Powell. Mega-cap tech stocks lost big on Thursday as Apple (NASDAQ:AAPL) fell by 3.93%, Amazon (NASDAQ:AMZN) dropped by 2.56%, Microsoft (NASDAQ:MSFT) lost a further 2.91%, and EV maker Tesla (NASDAQ:TSLA) tumbled by 5.03%.

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Just a day after Keybanc had a glowing report about the demand for cloud computing services, JPMorgan came out with its list of Hot Stocks Heading into 2022. The list notably included several semiconductor stocks like Broadcom (NASDAQ:AVGO) and Marvell Technology (NASDAQ:MRVL), two stocks that are trading at much lower multiples than NVIDIA. This has been the theme amongst Wall Street analysts as of late. NVIDIA has reached a price to earnings of over 90, which has turned many investors to stocks with cheaper valuations.

Nvidia stock forecast

Speaking of Apple, its recent iPhone 13 release is one of the hottest commodities this holiday season. There has already been a shortage of phones announced, especially due to the fact that the ongoing global chip shortage is affecting supply chains. Some industry analysts are wondering whether Apple will be frustrated by the lack of chips and bring all of its manufacturing in-house, like it did with the M1 chips for its Macbook Pro laptops. This would be a bearish sign for the chip sector, particularly for companies like Broadcom which supply the wireless network chips to the phone maker.