NVIDIA Corp (NASDAQ:NVDA) stock is trading lower Tuesday, caught in a broader tech sell-off as rising long-term interest rates spook investors. Here’s what you need to know.
What To Know: The chipmaker's shares are lower in Tuesday trading as the 10-year Treasury yield climbed to 4.29%, creating pressure on high-growth, high P/E stocks. This macroeconomic headwind is making future earnings appear less valuable, prompting a retreat from tech sector leaders.
The downturn comes despite Nvidia recently posting another quarter of blockbuster earnings, with revenue of $46.74 billion and adjusted earnings of $1.05 per share surpassing Wall Street estimates. The company also announced a massive $60 billion share buyback program, signaling strong confidence in its future.
However, investor enthusiasm has been tempered by the company's forward guidance. While strong, the outlook was slightly softer than the most bullish analysts had hoped for. A key point of concern is the deepening uncertainty over sales in China, a critical market. Nvidia's guidance assumes no shipments of its high-performance H20 chips to the region, weighing on the stock's otherwise powerful growth narrative.
This complex environment fuels a stark debate on Wall Street, with bulls like Wedbush analyst Dan Ives predicting a path to a $5 trillion valuation, while bears caution that an “AI bubble” could lead to a collapse if the technological revolution doesn’t fully materialize. For now, macroeconomic fears are eclipsing the company’s impressive operational results.
Benzinga Edge Rankings: According to Benzinga Edge stock rankings, Nvidia maintains exceptional scores for Growth (97.78) and Quality (93.08), underscoring its strong underlying fundamentals despite the current market pressure.
Price Action: According to data from Benzinga Pro, NVDA shares are trading lower by 3.4% to $168.28 Tuesday morning. The stock has a 52-week high of $184.48 and a 52-week low of $86.63.
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How To Buy NVDA Stock
By now you're likely curious about how to participate in the market for NVIDIA – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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