Nvidia Stock Price Fell Over 2%, Can Shares Maintain The Bull Run?

Gaming sector is evolving with fresh and mind-blowing technologies that are rendering games more immersive and engaging for the users. Nvidia (NASDAQ: NVDA), one of the greatest GPU (Graphics Processing Unit) manufacturers, is actively involved in this digital evolution. Nvidia stock price fell 2.2% on December 14, 2022, changing hands at $176.74 at the publication time.

Nvidia’s Graphic Segment Remains The Core of Business

The decline in share value came following the Federal Reserve’s announcement to increase the key interest rate by 50 basis points, though it was lower than what people expected. The GPU manufacturer is primarily focused on their graphic segment followed by networking and computing. The former generated $4.1 Billion in revenue for the organization, which translates to over half of the entire Q3 revenue.

The company is among the most admired brands in the gaming industry as the majority of gamers rely on Nvidia graphic cards for their systems. Gaming and GPU industry go hand in hand and can be beneficial for organizations in the long run. In 2021, the sector was valued at $23.9 Billion. Experts believe it can grow to become a $130.02 Billion market by 2027.

According to the latest data, there are over 3 Billion gamers globally. China and the United States dominated the sector, generating $50 Billion and $47.62 Billion respectively. Mobile gamers are growing at a faster pace, contributing significantly to make the segment a vital part of the industry.

Nvidia Stock Price Analysis

Nvidia stock price has plunged by around 64% since January 2022. The chart shows a double bottom pattern from January 2022 to March 2022 followed by a sharp decline beginning by the month’s end. The share traded at a monthly high of $289 but fell to $155 by May 2022. The value reached as high as $195 and as low as $150 during June 2022.

Nvidia shares show an uptrend from July 2022 to create a double top pattern by the end of September. The stock witnessed a bull from October 2022 and currently maintains a resistance between $195 and $200. If the trend manages to stay active, it may reach close to the resistance by this year’s end.

The company shows a  positive EPS during the initial couple of quarters this year but lagged behind during the Q3 2022 earnings. Report shows a failure to meet the estimated EPS by over 17% surprise. They surpassed their estimated revenue in all their quarterly earnings reports this year. They generated $8.29 Billion during Q1 2022 with a surprise of $164 Million, followed by $6.7 Billion in Q2 and $5.93 Billion during Q3. The organization estimates $6.02 Billion in revenue the next quarter.

Nvidia is among the companies that can take advantage of industries like metaverse, semiconductor, gaming and more. The gaming market witnessed the launch of games like Modern Warfare (2019) and Warzone sequels. Both the games require high end graphic cards like Nvidia GeForce GTX 1060.

Semiconductors play a crucial part in company products including chips, GPUs and more. Currently Samsung holds the crown in this sector having generated $83 Billion in 2021. The industry generated $552 Billion as a whole the same year. Omniverse, Nvidia’s metaverse platform, won the Fast Company’s Next Big Things in Tech award this year.

Growth in all these sectors will directly affect the company and ultimately on Nvidia stock price. The organization has established itself as a stout entity which keeps contributing to this digitized era.

Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.