Due to cooling off in video game sector after Pandemic frenzy, NVidia has gone down by 57% in 2022. This is a harder fall considering that iShares Semiconductor ETF (SOXX) fell 42%. Nvidia had to close Russian market and taper off China market due to US sanctions against two countries.

Today, Thursday Oct 20, Piper Sandler reaffirms its Overweight rating at $200 as Barron’s reported (Kim, 2022, October 20). According to Harsh Kumar, the analyst of Piper Sandler, Nvidia will continue to make new models and generations of graphic cards as it did with Ada Lovelace that was developed from the architecture of RTX4090 card. This new model was launched in September and showed strong demand. So, Nvidia will start growing in 2023 and 2024.

Some anticipate that markets will fall another 10% when US Fed reserve reduce its balance sheet soon. For long term value investors, this might be a good time to pick up good companies like Nvidia at good price, around $125.59 or 10% lower.

Provided with The Blue Ocean Asset Management Partners, LLC. Further information, please contact us