5 Factors That Could Lead to Nvidia Stock Plummeting by Over 50%

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Nvidia (NASDAQ: NVDA) stock has been on a steady rise over the past two years, but history shows that even industry leaders like Nvidia can experience significant drops when market conditions change. In a recent video, analyst Travis Hoium discusses the potential for increased volatility in Nvidia stock moving forward.

Despite Nvidia’s recent success, the Motley Fool’s Stock Advisor analyst team did not include Nvidia in their list of the top 10 stocks for investors to buy now. The stocks that did make the cut have the potential to deliver significant returns in the years to come, with past recommendations yielding impressive results for investors.

It’s worth noting that Travis Hoium has positions in Alphabet, Matterport, and Unity Software, and The Motley Fool ranks and recommends several major tech companies, including Alphabet, Amazon, Cisco Systems, Meta Platforms, Microsoft, Nvidia, and Unity Software. The Motley Fool also offers a disclosure policy, and Travis Hoium may receive compensation for promoting their services.

While Nvidia has seen strong performance in recent years, there are potential risks that could cause the stock to fall by more than 50%. Investors should be mindful of factors such as market developments, competition, and changing industry dynamics that could impact Nvidia’s future performance.

In conclusion, while Nvidia has been a solid performer in the past, investors should be prepared for increased volatility in the stock moving forward. The potential for significant gains exists, but there are also risks that could lead to substantial losses. It’s important for investors to carefully consider these factors before making investment decisions in Nvidia stock.

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https://finance.yahoo.com/news/5-reasons-nvidia-stock-might-153747705.html