Nvidia Stock Good for Bottom Fishing This Christmas, Citi Group Executive Says

2018-12-15 14:36

CoinSpeaker
Nvidia Stock Good for Bottom Fishing This Christmas, Citi Group Executive Says

While that the declining cryptocurrency market has hit the business of every chip maker on Earth, the story of Nvidia is no different. The semiconductor chip-making giant is facing severe woes with its stock price falling by nearly 50% in the last three months. At the closing hours on Friday, the Nvidia stock was trading at $146.21, according to MarketWatch.

In August this year, Nvidia announced its departure from the crypto business amidst the market slowdown.  At that time, Nvidia CFO Collette Kress said: “Whereas we had previously anticipated cryptocurrency to be meaningful for the year, we are now projecting no contributions going forward.”

However, according to the CNBC report, Citi group told its client to start ‘bottom fishing’ – a term popularly used in the securities market which means to “hunt for securities that they believe are undervalued in the market or that recently have experienced a significant price drop”.

Nvidia Is a Buying Opportunity This Christmas

Citigroup analyst Atif Malik wrote:

“Citi semiconductor team believes a bottom is forming in semiconductor stocks which could be a good entry point into high quality companies where Street estimates have already been cut sharply. We’re “adding Nvidia to Citi Semis Christmas Shopping list on bottom picking.”

Nvidia has a good market share in making graphics chips for data centers and gaming consoles. However, after last month’s release of the quarterly report, the stock price tanked further by 18 percent. Despite the recent turbulence, Malik says that Nvidia is picking up the market share for GPUs. Furthermore, he remains confident about the long-term trends in AI and self-driving car technology. “We believe a combination of slower (but still robust) revenue growth, increasing capex rationalization, and higher use of storage and compute optimized server-less services like AWS Lambda at three global hoyer-scale cloud players could slow down demand in the next couple of quarters,” says Malik. But he later adds that “this is already reflected in our current 5 percent/4 percent below-consensus January/April-quarter data center estimates. We maintain our underlying buy-rated thesis of Nvidia as a key beneficiary of secular growth trends such as eSports, deep learning, artificial intelligence, and autonomous driving.” SoftBank Planning to Exit Nvidia Investment by Early 2019

Citing an anonymous source, Bloomberg recently reported that SoftBank is planning to pull out its investments from Nvidia by early 2019. In May 2017, the Japanese banking conglomerate invested $3 billion in Nvidia through its Vision Fund. The sources say that SoftBank is planning its exit in a structured manner, such that it won’t affect the stock price much.

The banking giant has created a “collar-trade” of $6 billion. This will allow investors to amass stakes while protecting themselves against a decline in stock prices. The sources added: “SoftBank has structured equity trade deals with investment banks to hedge against a drop in Nvidia’s share price”.

Nvidia Stock Good for Bottom Fishing This Christmas, Citi Group Executive Says

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Trident Group (TRDT) на Currencies.ru

$ 0.0132492 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 42.85 %
Cегодня L: $0.0132492 - H: $0.0132492
Капитализация $16.072k Rank 99999
Цена в час новости $ 0.0155825 (-14.97%)

nvidia stock bottom group executive says citi

nvidia stock → Результатов: 12


Meteoric Bitcoin Rally Won’t Rescue Nvidia’s Flailing Stock

By CCN: Nvidia previously blamed its negative earnings report on “crypto winter,” the vaunted extended bear market which Bitcoin appears to have finally exited. The incredible rally of the past couple weeks means many industries related to crypto will see increased demand and valuation – everything from mining to software development will be in fashion again.

2019-5-17 20:39


Фото:

Nvidia Shares Fall 19% After Company Reveals Q4 Revenue Might Fall Short By $700M Due To Falling Crypto-related GPU Demand

Even without directly investing in cryptocurrencies, Nvidia was one of the biggest winners in 2017’s crypto boom. With last year’s soaring prices of digital currencies, the company’s GPUs were selling like hotcakes as crypto miners, who were busy building their mining rigs back then, snapped up stock worth $776 million in 2017 alone.

2018-11-16 16:09