Stock Market Today, Nov. 13: Nvidia Slides After HSBC Downgrades Stock to Hold on CEO Uncertainty
Nvidia (NASDAQ:NVDA), an AI accelerator, graphics processor, and data-center networking solutions provider, closed at $162.85, down 2.01%. HSBC downgraded the stock to hold, and investors are watching the earnings call on Nov. 17.Trading volume reached 360.7M shares, coming in ab
On November 13, Nvidia's stock price fell after HSBC reduced its rating to "hold" due to uncertainty surrounding the company's leadership. The tech giant, known for its AI accelerator and graphics processing solutions, saw its shares drop to $162.85, a 2.01% decline. The stock's trading volume increased to 360.7 million shares, approximately 15% higher than its three-month average of 144.3 million shares.
HSBC analyst Frank Lee downgraded the stock, lowering its price target from $375 to $170, just 4% above Friday's closing price. Lee's concerns stem from the fact that a significant portion of Nvidia's revenue, about 11%, comes from outside the U.S. and Taiwan, which could be subject to stricter export regulations. This uncertainty has led to a broader sell-off among semiconductor peers, with Advanced Micro Devices and Broadcom also experiencing declines.
Nvidia's upcoming earnings report on November 17, the first without CEO Jensen Huang, will be closely watched by investors. Despite the recent setback, the company is expected to maintain its strong revenue and earnings growth trajectory. However, the lack of leadership clarity and potential regulatory hurdles have made Nvidia's stock a cautious play for many investors.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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