When it comes to investing, staying ahead of the game is crucial. That’s why at Extreme Investor Network, we make it our mission to provide you with the latest insights and updates on the stock market. Today, we’re honing in on chipmaking giant Nvidia and its recent struggles in the market.
Despite the S & P 500 making a broad recovery earlier in the week, Nvidia failed to bounce back from its losses. In fact, Nvidia shares slipped 0.2% on Friday, ending the week down approximately 2.4%. This underperformance extends beyond just the broader market index, as it also lags behind the semiconductor sector. On the contrary, the iShares Semiconductor ETF (SOXX) managed to finish the week up 2.4%.
One of the factors contributing to Nvidia’s recent challenges is the potential delays with the company’s Blackwell chips. Despite this setback, the stock remains 111% higher in 2024, largely thanks to the artificial intelligence boom. Bank of America analyst Vivek Arya remains optimistic about Nvidia’s fundamentals and competitive valuation, even in the face of recent losses.
According to Arya, the market volatility and drawdown in semiconductor stocks are not necessarily reflective of the sector’s strength. Instead, it’s a result of the gains made in AI-related companies, which have been the standout performers in recent times.
At Extreme Investor Network, we understand the complexities of the stock market and aim to provide you with unique insights to help you navigate the ever-changing landscape of investing. Stay tuned for more updates and analysis on top-performing companies like Nvidia, only on our platform.