NVIDIA (NVDA) Stock prices are starting to rise after a big drop $900 billion lost In terms of market value.
Nvidia shares rose 5% in morning trading on Tuesday, ahead of the company’s second-quarter earnings report on Aug. 28, analysts at Goldman Sachs said. (GS) Bank of America (BAC) He said stock prices are expected to recover, but that it may take some time.
Bank of America’s Vivek Arya named Nvidia a top “recovery” stock in a note to investors on Monday. While Arya noted that Nvidia’s volatility could continue through September, he said the company is likely to recover in the fourth quarter as “seasonal headwinds dissipate.”
Scott Rabner, technical strategist at Goldman Sachs He advised investors to “buy low.” He pointed out that the stock market could turn around at the end of August, as it is expected to hit new highs after the U.S. presidential election in November.
In July, Bloomberg said the Biden administration Considering the introduction of the toughest export controls, Foreign Direct Product Rulesto block sales of advanced semiconductor manufacturing equipment to China. Semiconductor stocks also fell. Comments about Taiwan Former President and Republican candidate Donald Trump did so. But Jefferies analysts say the big semiconductor selloff (Jeff) Bank of America said: It was an overreaction.And in August, Reports of design flaws and production delays The announcement of the company’s latest and most powerful Blackwell series sent shares lower.Adding to the company’s woes is investor skepticism about big AI spending from Nvidia’s top customers, including Microsoft. (Microsoft) and Google (Google).
Aria noted that Nvidia did not hint at a Blackwell delay in its recent presentation, adding that he believes concerns about whether Nvidia customers will monetize AI are unfounded.
“AI adoption at the enterprise and national level has yet to really take off,” Arya said, adding that “Nvidia’s flagship product that’s best for AI, Blackwell AI, hasn’t even started shipping yet.”
“In other words, waiting for the major cloud providers to admit that AI has a low ROI is, in our view, a waste of time.” Essentially, Arya believes NVIDIA won’t experience a slowdown in orders from large tech customers, but rather the opposite.
-Britney Nguyen contributed to this article
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