Nvidia (NVDA Stock): Tech stocks bound to disappoint? [Video]

Giles Coghlan LLB, Lth, MA Financial Source

The prospect of higher interest rates, the end of QE, and the start of QT have all hampered sentiment around tech stock. With all things digital finding plenty of buyers during Covid-19 induced lockdowns the deeper correction in tech stocks may continue. However, do some of the larger tech stocks names warrant buying on the dips?

Over the last 14 years, Nvidia has risen 12 times between January 18 and February 21. The largest return was in 2020 with an 18.61% profit and the largest fall was in 2008 with a -14.29% loss. 5.35% is the average return. Is Nvidia worth buying over the medium term or is a deeper correction in stocks still to come?

Major Trade Risks: The main risk to this seasonal pattern would be if the Fed are more hawkish and hike by 6 or 7 times this year rather than the expected 3 or 4.

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Author

Giles Coghlan LLB, Lth, MA

Financial Source

Giles is the chief market analyst for Financial Source. His goal is to help you find simple, high-conviction fundamental trade opportunities. He has regular media presentations being featured in National and International Press.

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