Is It Finally Time to Sell Nvidia Stock?
September turned out to be a forgettable month for Nvidia (NASDAQ: NVDA) investors as share prices of the semiconductor bellwether fell 13% so far this month. The drop is surprising because there was no company-specific news in that time to justify such a price drop.
One reason Nvidia took a breather this month might have been because of a broader pullback in the stock market. The Nasdaq-100 Technology Sector index, for instance, is down 6% in September, while the S 500 has pulled back 4%. The Federal Reserve's warning that further interest rate hikes could be on the way to curb inflation suggests that stocks could remain under pressure.
Also, a couple of reports have recently pointed out that Nvidia stock's artificial intelligence (AI) bubble could be about to burst because of its expensive valuation and the viability of this technology in the long run, which might have created doubts in investors' minds about the sustainability of the stock's tearing run.
Source Fool.com
