Investors Rotate Out of Tech Stocks as Nasdaq Drops Over 4%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy NVDA?
Source: Yahoo Finance
- Market Turmoil in Tech: Investors rotated out of tech stocks in February due to concerns over AI disrupting established industries, leading to a more than 4% drop in the Nasdaq Composite, indicating uncertainty about future growth prospects.
- Nvidia Buying Opportunity: Despite a roughly 5% pullback in Nvidia's (NVDA) share price following its quarterly earnings, analysts see strong demand in data centers, with hyperscalers expected to spend around $650 billion on AI workloads, creating significant revenue opportunities for Nvidia.
- Salesforce Growth Concerns: Nancy Tengler, CEO of Laffer Tengler Investments, noted that Salesforce (CRM) lacks a compelling growth trajectory, prompting her firm to exit the stock, reflecting broader market worries about the future of software-as-a-service (SaaS) companies.
- Positive Outlook for Memory Stocks: Amid surging demand for AI workloads, memory stocks like Micron (MU) and Western Digital (WDC) have risen 60% year-to-date, showcasing strong market interest in this sector, even as the overall tech software ETF has declined 24% since January.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 177.190
Low
200.00
Averages
264.97
High
352.00
Current: 177.190
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- New Product Potential: The introduction of a new artificial-intelligence processor may generate renewed interest and excitement for the company.
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- Small Firms Surge: Despite Nvidia not directly mentioning them, nLIGHT and Applied Optoelectronics saw their stocks rise by 20% and 21%, respectively, indicating market optimism about these smaller companies' potential future collaborations, likely benefiting from Nvidia's diversified supply chain strategy.
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- Analyst Price Target Cut: RBC Capital's analyst Srini Pajjuri lowered Broadcom's price target from $370 to $340 while maintaining a 'hold' rating, signaling concerns about the company's short-term outlook despite its strong fundamentals.
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- Optimistic Earnings Outlook: Despite the price target reduction, Pajjuri anticipates that Broadcom will report a 'beat and raise' quarter for Q1 fiscal 2026, driven by strong demand for tensor processing units (TPUs) produced for Google, which could enhance the company's growth.
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