Why Nvidia Stock Is on Track to Have Its Worst Quarter Since 2022 | Global News Avenue

More and more economic problems threaten to derail AI trade, place nvidia (NVDA) Inventory is expected to reach its worst quarter since 2022.

Nvidia Stocks have fallen about 12.5% ​​since the start of the quarter. This will represent the worst performance of stocks since the third quarter of 2022 Inflation rate is 8.2% The Fed expects to increase interest rates by another 1.5 percentage points within next year. (final, Central Bank Raising rates is even higher than forecast, but by the end of 2022, chatgpt Inspired the AI ​​craze, it turned Nvidia into one of the most important companies in the world. )

The third quarter of 2024 is the quarter when NVIDIA stocks fell since the 2022 bear market, which is a drop below 2%. Most of July’s losses are worried on Wall Street Geopolitical tensions and Overspending on AI infrastructure– Early August – One of Wall Street’s favorite lever The deal backfires, leading to the explosion of US technology stocks.

Economic uncertainty trumps strong demand for AI

NVIDIA stocks’ recent weakness is A wider expulsion,Depend on Pivot of momentum stock and risky assets of safe haven. Wall Street’s economic impact on President Donald Trump’s unpredictable tariff policies is becoming increasingly annoying. His inappropriate approach creates serious uncertainty, and investors worry about increasing costs, Block commercial investmentrecruit, and then Consumer spending.

The economic outlook has had an impact on NVIDIA’s stock, but most people on Wall Street agree that the company’s business is very strong. Analysts comprehensive Support their bullish ratings Digested stocks after keynote speech by CEO Jensen Huang The company’s annual GPU technology conference Tuesday. Bank of America analysts called NVIDIA’s product roadmap “unparalleled” on Tuesday, while Citi analysts said on the same day that they “feel assured under NVIDIA if anything is expanding.”

However, after two years of market leadership, high expectations began to catch up with Nvidia. company Blow up past quarterly earnings expectations At the end of last month, prompt A chorus of bullish comments From analysts. despite this, Its shares fell The next day was over 8%, and has not recovered from the decline.