Although news of its new flagship artificial intelligence (AI) chip for the Chinese market has tilted the price of Nvidia (NASDAQ: NVDA) stock to close the previous day on a slightly positive note, the technology behemoth’s shares have been in a decline for the majority of the past week and in pre-market.
As it happens, Nvidia stock price at press time stood at $123.54, reflecting an increase of 4.76% on the day, a decline of 3.78% across the week, and a further drop of 0.057% in pre-market, according to the most recent data retrieved on July 23.
Why is Nvidia stock down?
Specifically, the renewed concerns about stricter American tech export restrictions to China and the broader market’s shift away from large-cap, high-growth tech stocks towards safer, smaller-cap investments have resulted in a notable decline in Nvidia’s stock price, but also many others.
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Indeed, all the major US technology and semiconductor stocks, including Apple (NASDAQ: AAPL), Advanced Micro Devices (NASDAQ: AMD), and the like, have started to fall from their all-time highs (ATHs) over the prospect of sanctions on companies providing China with advanced American tech.
Signs of hope
On the other hand, Moor Insights & Strategy founder, CEO, and chief strategist Patrick Moorhead has opined that there is still room for recovery of semiconductor shares like Nvidia stock, arguing that the belief that the AI advances are coming to an end is simply inaccurate:
“This whole notion of AI coming to a screeching halt anytime soon is fiction.”
Furthermore, Citi analyst Atif Malik believes that the next 30 days will see multiple positive catalysts for Nvidia stock, including the expectations that its CEO Jensen Huang and Meta Platforms (NASDAQ: META) CEO Mark Zuckerberg will discuss the future of AI at the upcoming SIGGRAPH 2024 conference.
All things considered, Nvidia stock seems to be on a weak streak in recent days but finance experts maintain conviction that it will not last long. That said, trends in the stock market might change unexpectedly, so doing one’s own research is important when investing.
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