Nvidia has seen a considerable fluctuation in its stock value throughout the year, though the overall progression can be seen as a downward trend. At the end of 2021, Nvidia’s stock value was at approximately 300 USD and its lowest value within the year was 112 USD in October of 2022 (Yahoo Finance, 2022). As of December 7th, the value remains at approximately 160 USD. As such, a minor increase can be noted but does little to change the fact that the stock value of Nvidia is observing a steady decline. The higher peaks between the end of 2021 and the beginning of 2022 can be explained by the continued purchase of items by individuals building powerful PCs. This is likely due to the effects of the pandemic which had allowed many customers to not only spend more time using their PCs but similarly allowed them to improve their capabilities. Additionally, Nvidia continues to oversee a sizable portion of the market in regard to GPU sales. Similarly, the rise of value among various cryptocurrencies resulted in a higher demand for various Nvidia products.
However, many of the factors that contributed to the growth of Nvidia stock were also involved in its decline later in the year. As pandemic measures had become less restrictive, individuals relied less on their PCs overall, or clients that were interested in products had already updated all relevant hardware. Many deals including cloud-based software and specialized equipment from Nvidia had also slowed. The cryptocurrency market had observed a large crash within the recent months which similarly contributed to the rapid purchase of Nvidia GPUs that was booming prior. These findings indicate that Nvidia is extremely susceptible to external elements such as inconsistent changes in client needs, crashes of related markets, and shortages of materials. Overall, the financial health of Nvidia may be highly negatively impacted by this in the future.
Reference
Yahoo Finance. (2022). NVIDIA Corporation (NVDA). Yahoo Finance. Web.