Sometimes traders call this the sympathy effect. AMD warning puts undue pressure on NVDA stock In any case, Nvidia quickly reassured its stakeholders that the company “does not expect the new controls, including restrictions on sales of very dense systems, to have a significant impact on our business.” “. The new restrictions mainly concern supercomputers with a certain number of “petaflops” (no, I’m not making this up) of computing power. Outraged, Reuters clarified that US officials “have granted exemptions to companies from the United States and its allies to apply for a license”. First, we must acknowledge that the US government has reportedly imposed a new set of restrictions on “certain US-made semiconductor manufacturing equipment to China”. There was some AMD-specific news, but we’ll get to that in a bit. This happened even though there was no Nvidia-specific negative news that day.
What’s going on with NVDA Actions?Īfter already losing much of their value in 2022 so far, Nvidia shares lost another 8% on October 7. If you can look into the abyss of despair and buy stocks when other traders are panicking, then Nvidia (and, indirectly, AMD) may have just given you the opportunity of a lifetime in the chip market. So, it will take a strong stomach and an iron will to buy NVDA stock now. This is easier said than done, however, as emotions take over and outright scorned actions don’t necessarily look like bargains in times of peak pessimism. In hindsight, it’s still obvious that you should have bought the stocks that everyone was panicking. You’ve heard the old adage: Buy when there’s blood in the streets. Overall, the market response appears overdone, opening up an opportunity for contrarian investors. However, Nvidia does not expect these rules to have a significant impact on the company’s business.
It weighed a lot Nvidia (NASDAQ: NVDA), as are new US rules restricting certain exports of technology components to China. On Friday, October 7, Advanced micro-systems (NASDAQ: AMD) issued a warning about the PC market and earnings that was so frightening that it dragged the whole Nasdaq down.
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