The problems are cyclical and Nvidia is sure to rebound by late 2022 or early 2023. But Nvidia is making its presence felt in various sectors like AI and Omniverse platform. It is a negative point for the tech industry and the Nasdaq index fell by more than 4% as a result.Īll in all, there are various negative factors piling up for Nvidia as a company. It only signals that in the coming Fed meeting the interest rates are going to be hiked by another 75 basis points. As per him, the US economy might have to bear some pain in the short term.
Fed Chairman’s hawkish comments– On Friday (26,08.2022), Fed Chairman Jerome Powell spoke for only 9 minutes and made very hawkish comments about the economy and inflation. However, it expects the gross margin to come back above 65% and the dip in Q2 was just because it was clearing old stock to line up fresh products. It expects the revenue to be only $5.7 billion, down more than $1 billion from what Wall Street had been predicting. Poor Guidance for Q3 – Management still believes that worse is not over for Nvidia and has given poor guidance for Q3. So, the results missed analysts’ estimates on every parameter and hence saw the wrath of the investors. Add to it, the gross margin is down from 60-65% range to 46%. Moreover, the EPS shrank 72% to $0.26 only, one of the worst performances in the last four quarters. It reported a revenue of $6.7 billion, well below the previous guidance of $8.1 billion. Poor second quarter results – Nvidia reported Q2 (quarter ended July 31, 2022) on August 24, 2022, and the results were disappointing for sure. It also expanded its partnership with the Broad Institute to help biomedical researchers by providing better tools based on AI to improve analyzing data on the Terra Cloud Platform Nvidia expanded its partnership with Booz Allen Hamilton and The Broad Institute: Nvidia announced the expansion of its partnership with Booz Allen Hamilton to provide customers with AI-enabled Cyber security. Through this alliance, Delloite professionals using Nvidia platforms can help enterprises to build and use various AI services. Nvidia and Delloite expansion of their partnership: Nvidia and Delloite are expanding their partnership to provide hybrid-cloud services to their clients based on Nvidia AI and Nvidia Omniverse. restrictions on chip exports to China are expected to affect Nvidia’s sales by 5% to 10%, but Nvidia commented that these rules would have no material effect on its business. Restrictions on China chip exports: The U.S. NVIDIA Stock Forecast 2022: Buy, Sell or Hold?ĭisappointing results could spell trouble for NVIDIA. NVIDIA Stock Forecast: Outlook For 2022. NVIDIA Stock Forecast: Analyst estimation. Disappointing results could spell trouble for NVIDIA.
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