NVIDIA (NASDAQ:NVDA) is a well-liked growth stock, particularly from a fundamental standpoint. The company’s share price increased 120% in 2021 after having a phenomenal year, with revenue rising by 61% year on year and gross margin inching ever higher.
However, with a new marco environment in 2022, we are seeing the reverse reaction. NVIDIA has returned nearly all of its 2021 gains amidst a 50% drop.
What is the cause of this stock’s rise and fall? Should investors start considering investing in NVIDIA?
What does NVIDIA do?
For those who are unfamiliar, NVIDIA is the market leader in discrete graphics processing units (GPUs). In simpler terms, it is a type of chip that allows for graphics rendering as well as the processing of large amounts of data at a faster rate than Central Processing Units (CPUs).
Gaming, artificial intelligence, autonomous vehicles, cryptocurrency mining, robotics, augmented and virtual reality are just a few applications that rely heavily on GPUs....