1 Alarming Reason Why Nvidia Stock Could Crash Further
Nvidia (NASDAQ: NVDA) has won big amid the graphics card shortage of the past couple of years as booming demand and tight supplies have led to inflated GPU (graphics processing unit) prices and supercharged the company's revenue and earnings growth.
However, it looks like Nvidia is finally losing that catalyst. Let's see what's ailing the graphics card market and how a weak pricing environment could create more headwinds for this tech stock that has already lost significant ground in 2022.
Demand for GPUs has outpaced supply over the past couple of years. Pandemic-driven demand from gamers, upgraded products launched by Nvidia, and demand from cryptocurrency miners have been the key drivers for graphics card sales in recent quarters. At the same time, supply chain bottlenecks caused by the global chip shortage have reduced the availability of graphics cards, which eventually led to inflated prices.
Source Fool.com
