Market Sell-Off: 1 Nasdaq Stock Down 48% to Buy Hand-Over-Fist
Nvidia (NASDAQ: NVDA) stock has slipped 48% in 2022, and things may be about to get worse for the graphics card specialist amid a multitude of headwinds, ranging from its rich valuation to weakness in consumer spending due to surging inflation.
A further drop in Nvidia's shares cannot be ruled out in the current scenario, especially considering that weak graphics card prices have the potential to wreck its gaming business. After all, gaming was Nvidia's second-largest business in the first quarter of fiscal 2023 (for the three months ended May 1), generating $3.6 billion in revenue and accounting for 43% of its top line.
The segment's revenue shot up 31% year-over-year as consumers continued to upgrade to Nvidia's RTX series cards. However, near-term weakness in demand on account of the Russia-Ukraine war and COVID-related lockdowns in China will hit Nvidia's gaming business to the tune of $400 million in the current quarter. While this is a big red flag for the chipmaker, savvy investors may want to take advantage of the potential dips in Nvidia stock to buy more shares, as the gaming business could supercharge its long-term growth. Here's why.
Source Fool.com
