Insights

Why Nvidia Stock Is Down Today

What happened 
Shares of Nvidia (NASDAQ: NVDA) were sliding this morning, likely based on comments an analyst made about Nvidia and as the Federal Reserve is poised to raise interest rates at its meeting today.
The tech stock was down by 3.3% as of 12:09 p.m. ET. 
So what 
Late yesterday Morgan Stanley analyst Joseph Moore resumed coverage of Nvidia with an equal weight rating on the stock. And while he’s optimistic about the company and has a $217 price target on Nvidia’s shares, he’s also concerned that the gaming market could slow down. 
Image source: Getty Images.

Moore thinks that there could be “significant deceleration” in gaming that could create a “modestly challenging” 2023 for the company, according to TheFly.com. 
Nvidia’s gaming revenue is the company’s largest sales segment, so it makes sense that investors would focus their attention on an analyst’s comments about the company’s gaming revenue.
Adding to some Nvidia investors’ worries this morning is the fact that the Federal Reserve is meeting today and tomorrow to decide about issuing an interest rate hike. 
The Fed is trying to tamp down inflation that’s currently at a 40-year high and investors are bracing themselves for a potentially aggressive 50-basis point hike. 
With interest rates on the rise, the economy could begin slowing down and could potentially inhibit how quickly some companies like Nvidia will grow. 
Now what 
Investors will get a clearer picture of how Nvidia is doing when the company reports its first-quarter results on May 25. 
But with the broader market focused on sky-high inflation and how the Fed will respond to it, Nvidia investors may want to prepare for more instability from the stock. 
Nvidia will likely still be a good long-term investment, but the stock market’s current volatility is no doubt testing the patience of some Nvidia shareholders. 
Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. –

What happened 

Shares of Nvidia (NASDAQ: NVDA) were sliding this morning, likely based on comments an analyst made about Nvidia and as the Federal Reserve is poised to raise interest rates at its meeting today.

The tech stock was down by 3.3% as of 12:09 p.m. ET. 

So what 

Late yesterday Morgan Stanley analyst Joseph Moore resumed coverage of Nvidia with an equal weight rating on the stock. And while he’s optimistic about the company and has a $217 price target on Nvidia’s shares, he’s also concerned that the gaming market could slow down. 

Image source: Getty Images.

Moore thinks that there could be “significant deceleration” in gaming that could create a “modestly challenging” 2023 for the company, according to TheFly.com. 

Nvidia’s gaming revenue is the company’s largest sales segment, so it makes sense that investors would focus their attention on an analyst’s comments about the company’s gaming revenue.

Adding to some Nvidia investors’ worries this morning is the fact that the Federal Reserve is meeting today and tomorrow to decide about issuing an interest rate hike. 

The Fed is trying to tamp down inflation that’s currently at a 40-year high and investors are bracing themselves for a potentially aggressive 50-basis point hike. 

With interest rates on the rise, the economy could begin slowing down and could potentially inhibit how quickly some companies like Nvidia will grow. 

Now what 

Investors will get a clearer picture of how Nvidia is doing when the company reports its first-quarter results on May 25. 

But with the broader market focused on sky-high inflation and how the Fed will respond to it, Nvidia investors may want to prepare for more instability from the stock. 

Nvidia will likely still be a good long-term investment, but the stock market’s current volatility is no doubt testing the patience of some Nvidia shareholders. 

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!