Nvidia
NVDA
2.43%
looked set to pare back some of its recent losses on Monday, but analysts at Citi are warning that the artificial-intelligence-fueled winning streak that powered the chip maker to a trillion-dollar valuation is coming to an end.
The stock climbed 2.8% to $105.70 in Monday morning trading. On Friday, it had dropped 4.1% to cap off a nightmarish week.
Nvidia shares have tumbled 20% over the past two weeks, dragged down by worries that the AI-investing craze that has powered the market higher ever since ChatGPT launched in November 2022 could soon begin to fizzle out.
The expectation that the Federal Reserve will soon start slashing interest rates has also accelerated a rotation out of the once-dominant Magnificent 7 group of megacap tech stocks. Citi analysts said in a research note on Friday that they don’t expect Nvidia to carry on being a massive driver of returns for the benchmark S&P 500
SPX
1.00%
index, even though they’re predicting that its profit growth will remain strong.
https://www.barrons.com/articles/mobileye-stock-price-self-driving-cars-4e234ced?siteid=yhoof2