Last Friday, Nvidia’s stock continued its downward trend, dropping more than 4% to $102.83.
Over the week, shares of the tech giant have plummeted 14%, dragging down the wider U.S. technology sector. This sell-off in tech stocks has also affected the crypto market, with Bitcoin and other altcoins undergoing notable corrections.
Despite the slump, Fundstrat analyst Tom Lee views the dip as a potential buying opportunity. During an appearance on CNBC’s Closing Bell, Lee suggested that Nvidia’s recent decline might signal a favorable moment for investment.
Are these sell-offs in Nvidia a buying opportunity? @Fundstrat‘s Tom Lee makes the case $NVDA pic.twitter.com/dVykj0g5ub
— CNBC’s Closing Bell (@CNBCClosingBell) September 6, 2024
He noted that Nvidia has experienced similar 30% pullbacks in the past, often followed by higher valuations. Currently, the stock’s price-to-earnings ratio stands in the mid-20s, which Lee considers reasonable.
Lee’s perspective aligns with Bank of America’s bullish outlook, which targets Nvidia stock at $165. The recent tech sell-off, combined with a $406 billion drop in Nvidia’s market capitalization and a DOJ antitrust probe, has heightened market volatility.
Despite these challenges, Nvidia has dismissed concerns related to the DOJ’s subpoena and is prepared to cooperate with regulators if needed.
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Grayscale Investments has called on the U.S. Securities and Exchange Commission (SEC) to allow the launch of its multi-crypto ETF—the Grayscale Digital Large Cap Fund—arguing that further delays violate statutory deadlines and harm investors.
Robinhood has officially introduced Ethereum (ETH) and Solana (SOL) staking services for its U.S. customers, offering a new way for users to earn rewards on their crypto holdings.
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