Nvidia Stock Decline Amid Antitrust Probe
Nvidia stock experienced a significant decline on Friday as investors continued to sell, leading to a 4% drop in the chipmaker’s shares. The stock is on track to end the week 14% lower following news of an antitrust probe being conducted. Currently, the stock price is hovering around $100, a crucial technical level closely monitored by analysts.
Technical Analysis and Investor Sentiment
Traders are closely watching Nvidia’s stock price as it approaches key levels such as $100 per share and its 200-day moving average. These levels are considered important indicators of the stock’s performance, with analysts skeptical about the sustainability of the company’s recent rally. Despite the recent decline, Wall Street analysts maintain a positive outlook on the stock, with an average price target of $153 per share.
Market Reaction and Company Performance
Investor sentiment towards Nvidia has been cautious since the company released its second-quarter financial results. While the earnings exceeded estimates, they fell short of the highest expectations, leading to some uncertainty among investors. The stock briefly recovered earlier in the week but resumed its decline after reports of a Department of Justice antitrust probe. Despite this, analysts at Bank of America reiterated their « buy » rating on the stock, anticipating no significant impact on Nvidia’s fundamental prospects.
Since early June, Nvidia has experienced a decrease in market value amounting to approximately $500 million, with the company’s valuation standing at $2.53 trillion as of Friday. Although the stock is set to close the week 14% lower, it remains 111% above its value at the beginning of the year. The decline on Friday was part of a broader tech sell-off, with the Nasdaq Composite falling by 2.5% as investors reacted to lower-than-expected August jobs data, raising concerns about a potential economic slowdown.
Source : www.businessinsider.com