Anika Begay
Chip manufacturing giant Nvidia failed to recover from the losses suffered earlier this week, despite the S&P 500 Index largely recovered.
Nvidia shares fell 0.2% on Friday, closing the week down about 2.4%. That’s not only underperforming the broader market, which closed just 0.04% lower for the week to date, but it’s also lagging the semiconductor sector. iShares Semiconductor ETF (SOXX) managed to close the week up 2.4%.
Nvidia vs. SOXX ETF in the last week
Potential delays in the company’s Blackwell chips have put pressure on the stock, which is set to continue its 111% surge in 2024, driven by the AI boom.
Bank of America analyst Vivek Arya said that despite Nvidia’s recent stock losses, its fundamentals remain strong and its valuation is competitive.
“I think what’s happening in the market and the volatility has nothing to do with semiconductors. But that’s where all the gains have occurred because AI has been the best out there, and that’s why these companies have seen the biggest declines even during this volatility,” Arya told Vscek’s “Squawk Box” on Friday.
