Move Over Nvidia, This Tech Stock Is a Screaming Buy Right Now
Nvidia (NASDAQ: NVDA) has been a popular technology stock over the years thanks to the terrific growth it has been able to deliver on the back of healthy demand for its graphics cards, which are used across a wide variety of applications. But an earnings warning issued by the high-flying chipmaker's management has got investors worried.
Shares of Nvidia pulled back in August after a solid performance last month. That's not surprising, as the company's preliminary results for the second quarter of fiscal 2023 have set the alarm bells ringing. Nvidia anticipates just 3% year-over-year revenue growth in fiscal Q2 (for the three months ended July 31, 2022) to $6.7 billion. The company is going to miss its original forecast of $8.1 billion in revenue by a huge margin, thanks to the sharp decline in its gaming business, which was down 33% year-over-year last quarter.
This alarming decline in Nvidia's gaming business -- its second-largest source of revenue -- isn't surprising, as prices of graphics cards have been pulling back in recent months on account of weak demand. However, Nvidia's rival Advanced Micro Devices (NASDAQ: AMD) seems insulated from the headwinds that affected the former last quarter.
Source Fool.com
