What's Going On With Nvidia Stock Wednesday

Nvidia Corp NVDA stock is trading lower Wednesday along with peers Advanced Micro Devices, Inc AMD, Qualcomm Inc QCOM, and others.

Major indices are lower following Fed Chair Powell's comments suggesting continued inflationary pressures and further rate hikes likely by the end of the year. Weak guidance from FedEx and a selloff in tech stocks have also weighed on.

Lynx analysts voiced significant downside risks for Nvidia. The analysts' stance starkly contrasts with other Wall Street analysts who have hailed the chipmaker as the AI champion.

Morgan Stanley analyst Joseph Moore moved Nvidia to Top Pick over AMD.

Oppenheimer analyst Rick Schafer said units and ASPs would play a significant role in second-half growth, with the industry acknowledging NVDA's undisputed dominance in training. 

By the time AMD's new chip launches in the first half of 2023, Nvidia's H100 will have a considerable lead, said Stacy Rasgon, a Bernstein analyst. Rasgon expects a decade before rivals can match Nvidia's software. 

Nvidia bagged significant orders from major Chinese internet companies with cloud computing businesses, including Alibaba Group Holding Limited BABA and TikTok parent ByteDance Ltd.

Reportedly U.S.'s semiconductor embargo on China has bred an underground market selling Nvidia chips at double the rates.

The stock surged 195% YTD and entered the $1 trillion market value in early June.

Price Action: NVDA shares traded lower by 3.54% at $422.70 on the last check Wednesday.

Photo via Wikimedia Commons