Nothing fights inflation better than technology, and Nvidia remains in the sweet spot. After the stock split, I sold some, recouping my investment. I have owned Nvidia shares for several years. Their average price target would have their value nearly double over the next year. There are 27 of them at Tipranks, with 22 telling investors to buy the stock. These “superchips” are designed to transform data centers into “AI factories,” which Nvidia calls a $150 billion market opportunity.Īnalysts haven’t given up on Nvidia either. The company says its latest data center chips use 30% less energy than earlier designs that relied on air cooling. Equinix (NASDAQ: EQIX) has already signed-on as a customer for its latest liquid cooled chips. Its data center business continues to grow.

Victory Lapĭespite the stock troubles, Nvidia is taking a victory lap at the annual CompuTex trade show in Taiwan. Why are chip stocks being hit when there’s still a shortage? Inflation has analysts pricing in a recession, even in technology. The iShares Semiconductor ETF (NYSEARCA: SOXX) is down 25% on the year. Shares of AMD, memory chip maker Micron Technologies (NASDAQ: MU) and communications chip maker Qualcomm (NASDAQ: QCOM) are all down this week. Rival Advanced Micro Devices (NASDAQ: AMD) is now selling its cards at standard retail prices, without the usual mark-up. The after-market price of Nvidia gaming cards is falling.

But Louis Navillier says investors should see that as a gift. The Securities and Exchange Commission (SEC) recently fined Nvidia for failing to warn about the impact of crypto mining on its business. The price of a Bitcoin ( BTC-USD) is down from over $46,000 to under $30,000, even as mining costs rise as it approaches the theoretical limit of 21 million coins.

Crypto miners use a lot of Nvidia chips, and crypto has fallen hard this year. Much of the blame goes to cryptocurrency mining. Even if the company reports solid numbers, it could warn on weakness ahead. But the expected revenue number is still 44% ahead of what it did for the same quarter last year.ĭespite this, bullish analysts are reducing their price targets on the stock.

Nvidia is already reacting to slower growth, slowing hiring and blaming rising inflation.

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