Nvidia (NASDAQ: NVDA) has been in the spotlight multiple times over the past few months, and not for good reasons. The GPU (graphics processing unit) maker has dealt with demand issues in its gaming segment (which also includes cryptocurrency miners). With revenue falling 33% year over year in its second quarter (which ended Aug. 24) and gross margin taking a 20% dive, Nvidia's financials are the weakest they've been in many years. 

The U.S. government last month forced more demand issues onto Nvidia. To minimize the spread of advanced artificial intelligence (AI) technology to China and Russia, the U.S. has banned the sale of Nvidia's most powerful (and expensive) chips to these countries. These sanctions are expected to hit Nvidia's revenue to the tune of around $400 million in Q3, depending on whether its customers in China and Russia are willing to substitute less powerful chips.

Issues like these helped drop Nvidia's stock price by 57% so far in 2022. Has the stock sold off enough, or perhaps even been oversold at this point? Let's look at Nvidia and see if now is the time to buy the stock.

Continue reading

Source Fool.com