Connect with us

Hi, what are you looking for?

Stocks

The Impact of Google’s Competition on Nvidia’s Stock Price

Image Source: Rawpixel.com / Shutterstock

What’s on the horizon for Nvidia’s stock price? Concerns arise due to RSI divergence and rising competition from Google.

Nvidia’s (NVDA) stock performance is showing signs of a potential bearish trend, highlighted by a Relative Strength Index (RSI) divergence observed in recent weeks. This divergence often foreshadows a shift in price direction and could signal a downward trajectory for NVDA stock, which has experienced a remarkable 145% surge since October 2022.

In addition to internal pressures, Nvidia is now facing stiff competition from Google, whose recent revelation about the superior speed of its custom-designed chips compared to Nvidia’s popular A100 chips caused Nvidia’s stock to decline by 2.1% on Wednesday. This news also impacted competitor Advanced Micro Devices (AMD), which witnessed a 3.5% dip in its stock value.

Google’s fourth-generation Tensor Processing Units (TPUs) are reportedly 20% to 70% faster than Nvidia’s A100 chips, widely utilized in the AI community. Furthermore, Google asserts that these TPUs are nearly twice as energy-efficient, addressing a critical concern in high-performing semiconductor devices.

Qualcomm (QCOM) has also made strides in the AI chip realm, as its AI 100 chips have surpassed Nvidia’s H100 model in tasks like image classification. These advancements could further erode Nvidia’s market position and stock performance.

Moreover, concerns about the US economy have resurfaced, affecting growth stocks like Nvidia. Reports of unexpectedly low jobless claims and a more subdued-than-anticipated nonfarm payrolls report are prompting some investors to divest their holdings, contributing to the uncertainty surrounding Nvidia’s future outlook.

The combination of RSI divergence, heightened competition, and economic anxieties suggests a potential decline for Nvidia’s stock. Investors are advised to stay vigilant regarding these developments and adapt their investment strategies accordingly.

Image Source: Rawpixel.com / Shutterstock

You May Also Like

News

Peloton, known for their stationary exercise bikes and treadmills, has faced significant financial challenges over the past year. The company experienced a surge in...

News

Amid the ongoing global supply chain challenges, many retailers in the United States are grappling with surplus seasonal stock, leading to increased storage costs...

News

With the continuous increase in gas prices, a decrease in consumer confidence, and the ongoing conflict in Ukraine, the European economy faces significant challenges....

News

As the demand for electric vehicles grows and the push for environmental sustainability increases, automakers are gearing up to focus more on the development...

News

Today, Brian Armstrong, the CEO of Coinbase, conveyed to his team through a company-wide email that due to declining stock and crypto values and...

News

Recently, Peiter “Mudge” Zatko, a former cybersecurity specialist at Twitter, published a whistleblowing document on the platform. Zatko highlighted several security issues with Twitter,...

News

Zelle is a popular peer-to-peer payment service that allows individuals to send and receive money, similar to apps like Venmo. It is widely used,...

News

Recently, after Chinese President Xi Jinping secured a third term, there was a sharp decline in the stock market in Hong Kong. Investors became...