Hold, there's a bear on the loose
the tech sector has seen quite a bit of volatility over
past weeks, as the weak euro and the European debt crisis have
prompted concerns among analysts and Nvidia is no exception.
Roth Capital analyst Arnab Chanda has downgraded Nvidia to hold from
buy on concerns that Nvida is looking at a slowdown. Chanda believes
that the European crisis will result in a significant drop in demand.
Nvidia's stock shed around 30 percent since the start of 2010 and
Chanda doesn't believe that the prices can recover in the short term.
“Near-term business momentum is slowing. We believe that Europe has been weaker than expected, and
business trends have been slow,” said Chanda.
A month ago SmarTrend identified a downward trend for Nvidia and
informed subscribers to quietly exit Nvidia when the price dropped
below $15. Since then, Nvidia shed a further 15.9 percent of its market
value. The stock closed at $12.70 on Thursday. Just one and a half
months ago, on April 15, Nvidia was trading at $18.01.
However, it is worth noting that crisis has heavily affected the entire sector, including Intel and AMD, but at the moment Nvidia appears to be the hardest hit outfit.