Down 30% From Its High, Is Nvidia a Buy?

Shares of high-performance chip specialist Nvidia (NASDAQ: NVDA) are currently down by around 30% from the all-time high of $346.47 they hit in November.

Much of that drop-off can be attributed to traders shifting their funds away from growth stocks and into value stocks in response to the Federal Reserve's plans to hike interest rates and reduce its balance sheet in 2022. A stronger-than-expected January jobs report and surging inflation can be expected to strengthen the Fed's resolve to go ahead with tightening monetary policy -- and that's not a positive sign for capital-hungry growth companies.

Further, at its elevated valuation, Nvidia is also exposed to significant headline risk. Its stock price slid briefly Tuesday after news broke that it was abandoning its planned acquisition of mobile-chip designer Arm.

Source Fool.com