NVIDIA's Stock Under Pressure
Subprime Woes Drag Down Chipmaker
Analyst Downgrades NVIDIA
NVIDIA's stock has been under pressure in recent weeks as concerns about the subprime mortgage market have weighed on the broader technology sector. The company's shares have fallen by more than 15% since the beginning of the year, and analysts are now downgrading their ratings on the stock.
On Tuesday, Citigroup downgraded NVIDIA from "buy" to "hold," citing concerns about the company's exposure to the subprime market. Citigroup analyst Glen Yeung said that he expects NVIDIA's earnings to be hurt by a slowdown in the demand for graphics chips from PC makers.
other analysts have also downgraded their ratings on NVIDIA in recent weeks. JPMorgan Chase downgraded the stock from "overweight" to "neutral," while Merrill Lynch downgraded the stock from "buy" to "underperform."
The downgrades come as NVIDIA is facing a number of challenges. The company is facing increasing competition from rivals such as AMD, and the subprime mortgage crisis is likely to lead to a slowdown in the demand for PCs.
NVIDIA's stock is currently trading at around $16, which is well below its 52-week high of $32. The stock is likely to remain under pressure in the near term as concerns about the subprime mortgage market continue to weigh on the broader technology sector.
**Conclusion** NVIDIA's stock is facing a number of challenges, including concerns about the subprime mortgage market and increasing competition. The company's stock is likely to remain under pressure in the near term, but it could be a good long-term investment for investors who are willing to tolerate some volatility.
Comments