Quantum computing, like the metaverse, also seems to be a catalyst to look forward to for NVDA stock. If figures hold true, the card will make for one of the highest-performing cards on the market, working four times faster than the previous generation and producing 360 frames per second at high resolutions. In fact, information leaked earlier this week relating to the company’s new RTX 4090 graphics card. As users grow, and computers scale up graphic processing technologies, Nvidia will be there to service those needs. O’Brient also mentions that Nvidia will benefit as the metaverse increases its presence worldwide. InvestorPlace’s Samuel O’Brient has noted that several investing insiders have gravitated toward NVDA stock in the wake of the news, including Paul Pelosi. Although Nvidia doesn’t manufacture its chips, the rush of cash could help it to rise in sympathy with its American peers. The CHIPS Act will help furnish the entire U.S. government’s recent chip news does present Nvidia with some positive catalysts, however minor they may be. For all the macroeconomic factors playing the heel to Nvidia’s year, there are positive outlooks for the company. But, don’t count NVDA stock out just yet. Story continues CHIPS Act, Quantum Computing, the Metaverse Provide a Light for NVDA Stock This decline comes as the company predicts a further decline in the demand for graphics cards - a downturn not helped by Ethereum’s ( ETH-USD) Merge upgrade killing ETH mining outright. The company projected at the time that it would make $5.9 billion in Q3 revenue - a steep decline from Wall Street’s $6.9 billion expectations. After missing estimates on its Q2 earnings, the company also slashed its forecast for this past quarter to save face. Investors haven’t been given much to look forward to regarding Nvidia’s incoming earnings report, either. Couple this with the estimated $500 million hit to the company from cutting ties with Russia, and you’ve got a recipe for bearishness.
Chip production is still hampered by the effects of a long constrained supply chain. Not to mention, supply-chain issues aren’t exactly in the rearview. And being part of a sector that is largely speculative and more volatile than others, NVDA stock and its peers bear the brunt of Jerome Powell’s decision-making. Rate hikes aimed at killing inflation are holding Wall Street hostage. The Federal Reserve is making it difficult for any publicly traded company to turn a decent profit, after all. Nvidia, like most other companies in 2022, certainly hasn’t gotten a fair shake.
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