Chip stock Nvidia has had a roller-coaster week. On the one hand, President Biden signed the CHIPS Act, which includes billions in subsidies for domestic semiconductor research and development. On the other hand, the company drastically cut revenue projections due in large part to inflation. And while Nvidia’s stock is down close to 32% in 2022, it rebounded somewhat this week by gaining more than 4%. On another positive note, out of 32 analyst reviews of the stock, 25 have a buy rating, 7 have a hold rating and there are no actual sells.


Closing Bell

Stock of the Week: Good News, Bad News for Chip Maker Nvidia

Welcome back to cheddar is closing bell. Everyone. I'm Asia Celestino along with Kristen Schouler and time now for our stock of the week. Today we're looking at NVIDIA as the chip stock has been in the headlines for reasons both positive and negative. The good news for a video this week was the signing of the chips and science act by president joe biden Tuesday. An important step for firming up us resilience and semiconductor manufacturing In an effort to become less reliant on foreign nations for these all important ships that go in everything from automobiles to gaming systems to washing machines. The Chips Act includes nearly $53 billion dollars in subsidies for domestic semiconductor research and development And promises to boost American competitiveness in the fields of science and tech compared to rivals like China analysts say. And video could benefit from some of those federal incentives related to chip research and design. And it's helped driving video stock higher so far this week. Taking a look at the stock is up about 4.12% in the five. Yeah, definitely. A nice turnaround. Asia. Asia is it? There's a loud crowd down here on the stock exchange. I'm sure I'm sure you can hear a lot of happy cheers but turns out for a video, even though the stock has turned around this week, it hasn't been all good news. So earlier this week, the company cutting its sales forecast for the second quarter and then macroeconomic challenges, revising its sales forecast to 6.7 billion for the quarter ending july 31st down from 8.1 billion that had previously expected in way below consensus estimates. But it's nothing new for the chip maker. As it turns out it's 2022 is challenging. The stock is still down close to 32% well underperforming the broader market. So NVIDIA pinning the blame on macroeconomic factors like inflation, which continues to be near a four decade high. And a big part of the videos businesses producing chips that go into gaming systems. But the gaming and crypto sectors are seeing a big drop in demand as consumers pullback on discretionary spending as their budgets tighten well despite the pullback and video is being held by increased data center revenue of 61% year over year to 3.8 billion. The company's data center business now announcing for some 55% accounting, we need to say for some 55% of total sales. So some more reason for optimism this week, Cathie Wood's ark invest scooping up some $60 million worth of this stock. And then on top of that, out of 32 analysts reviews on the stock, 25 have a buy rating seven have a hold rating, no actual cells. So that's helping it. But another reason that analysts thinking videos growth is because it has ride a range of hardware and software that's using autonomous driving. And the company developing a chip that acts as a brain basically of a computer, something that is necessary for autonomous driving.