Why Nvidia Fell Again Today but Tried to Recover
Although already down significantly for the year and the past week, graphics and AI chip leader Nvidia (NASDAQ: NVDA) was falling yet again today, down as much as 3.3% before recovering to a 0.5% decline as of 12:09 p.m. ET.
On Friday, the Biden administration came out with more sweeping limitations on semiconductors and related equipment that could be sold to China. Then today, the International Monetary Fund (IMF) cut its global growth outlook, also harming sentiment. To top things off, the Chinese government is once again locking down major cities in an effort to curb the spread of COVID-19, which has led to supply chain problems in the recent past.
In addition, analysts at Citi lowered their forecasts for Nvidia and a host of other data center-oriented chip stocks, pointing to the global growth slowdown highlighted by the IMF.
Source Fool.com
