Why Nvidia Stock is Dropping in Premarket Trading
Introduction
Nvidia stock is dropping in premarket trading on Tuesday, set for a fifth day of declines that, if realized, would mark the longest losing streak for the shares since last December.
Factors Weighing on the Shares
- Investors taking profits after the stock’s record closing high in August
- Bond yields moving higher, dampening demand for high-growth stocks
- Worries over China’s ban on iPhones and U.S.-China tensions
- Insiders selling stock, adding sell pressure
Optimism for Nvidia Stock
Despite the short-term declines, there are still reasons to be optimistic on Nvidia stock:
- The stock has rallied an impressive 209% so far in 2023
- The shares have an average rating of Buy among analysts surveyed by FactSet
- Consensus target price on the stock is nearly $650, implying upside of 44% from current levels
Conclusion
A series of short-term declines in Nvidia’s stock price shouldn’t change the bigger picture.
Contact
For more information, contact Jack Denton at [email protected]
