The chip market has been in disarray for the last two years now, and Nvidia (NASDAQ:NVDA) is no exception. Today, the company is down somewhat. However, it’s got big news waiting in the pipeline that should make it more noteworthy than it seems right now.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Nvidia isn’t the only semiconductor firm down in today’s trading. Much of the market is getting hit with a big dose of investor pessimism. With inflation still on the rise and interest rates to match, chipmakers may have trouble actually selling their products. Consumers are likely to pull in their wallets, and the businesses that serve them will do likewise since there’s less profit to be had.
This comes at a terrible time for Nvidia, who is releasing announcements ahead of its upcoming appearance at the annual Consumer Electronics Show event. Much of Nvidia’s upcoming releases focus on cars. Nvidia revealed that it’s working with Foxconn to produce cars with the Nvidia Drive system included, which allows cars to drive themselves. Better yet, Nvidia followed up word about its autonomous vehicle connections with word about the Nvidia GeForce NOW system. GeForce NOW is a cloud-based gaming service that will now be available in cars.
Though the market is less than pleased with semiconductors in general and Nvidia in particular, analysts seem largely unfazed by this reversal. Analyst consensus currently calls Nvidia a Strong Buy. Further, the stock also enjoys a 42.99% upside potential thanks to its average price target of $203.88 per share.
