Down 45%, This Trailblazing Semiconductor Stock Is a Must-Buy Before 2023
Many chipmakers have experienced whiplash over the past few years. Demand for semiconductors soared during the pandemic, as business closures accelerated digital transformation projects and stimulus checks left consumers flush with cash. But demand has now cratered in response to high inflation and economic uncertainty, as businesses and consumers have pulled back on discretionary purchases.
Not surprisingly, Nvidia (NASDAQ: NVDA) has suffered the consequences of that boom-and-bust cycle. Third-quarter revenue dropped 17% to $5.9 billion, and earnings fell 72% to $0.27 per diluted share, driven by particularly weak results in its gaming and professional visualizations segments. Worse yet, management expects revenue to fall more sharply in the fourth quarter.
As a result, Nvidia has seen its share price plunge as much as 66% this year, marking its worst sell-off in the last decade, and the stock currently sits 45% off its all-time high. On the bright side, that downturn has created a good buying opportunity for long-term investors.
Source Fool.com
