NVDA stops street testing...

Investment Analysis Clubs Saul’s Investing Discussions
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Nvidia (NVDA) reversed sharply lower, losing more than 7% and falling back below the 50-day moving average, in more than double its average volume. Reuters reported that Nvidia is suspending tests of self-driving cars following a fatal accident involving an autonomous Uber vehicle last week.

It’s funny, that is still a very small part of their income, but I guess it is a large part of the optimism. I am totally not worried, they and automakers will continue lots of testing and deep learning one way or the other. In the long run, I believe they will remain the leader in a growing spaced.

On the other hand, cryto-mining may be taking a hit after increase regulation and some publicized fraud. Combined, the two factors could easily cause a miss of estimates a few months from now.

For technical traders, crashing below the 50 day moving average is a big bad signal and can lead to more trading. They will look to see if it holds at the 200dma. That might be a good place for us faithful to start adding.

http://stockcharts.com/freecharts/gallery.html?nvda

P.

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Yeh - probably also getting killed for other reasons such as regulations surrounding Big Data and AI in general, the walking back of their crypto talk with the crashing crypto prices and then this.
A

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I am eyeing Nvidia’s one year chart. And today’s fall, heck its fall in March (although admittedly we do not know when it might stop falling) by eye ball looks like maybe only the 3rd or 4th biggest fall Nvidia has had just in the last 12 months. And remember, this is not a logarithmic graph. The falls at lower price levels, that by eye ball look bigger, will also be greater percentage losses. I was surprised it was down to $225. Again, such is the market. Such is the end of days…:wink:

https://finance.yahoo.com/chart/NVDA#eyJpbnRlcnZhbCI6ImRheSI…

Some perspective. Of course perspective can change if it keeps going down, a new ASIC comes along that takes over facial recognition, cryptcurrency crashes so that GPUs are irrelevant to miners with no alternative uses, and autonomous driving is pushed back many years.

Then again, for some of this, Nvidia would probably rush forward new gamer GPUs with the new graphics standard thus making the GPUs the miners have so passe, autonomous vehicles starts elsewhere, and to date no ASIC has been able to outperform Nvidia GPUs when put to honest apple to apple tests, except in crypto currencies, and then only a specific ASIC for a specific currency.

I do wonder if an ASIC could replace a GPU for facial recognition like AI. But since this is such a large market, one has to wonder, if so, then why has no one brought such an ASIC to market when they created ASICS for much smaller markets like crypto-mining.

Well, hopefully my perspective will stay in perspective and not require us to reenvision the market at some much more dastardly perspective. But I guess hardly concerned. I still have not done anything with this months or next months investment money. That is my plan and I am sticking to it, although from time to time I might delay or accelerate when I deploy money, and my SEP is now large enough to be material to my overall port, and that is tax free so I may do more things with that, but otherwise, what else you gonna do?

We did have the survey. Seems most folk are gonna do just like me (God help us :wink: )

Tinker

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Here is a logarithmic chart.
http://stockcharts.com/freecharts/gallery.html?nvda

Also, note on the weekly that it has not even touched the 200dma in a long time. Yesterday’s volume was very high as it sliced though the 50dma, not a good thing.

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I don’t know about the technicals, but looking at the logarithmic chart, NVDA clearly had at least 2 crashes that were larger than the current crash (that may or may not be finished) just since late October of 2017, and a third that was nearly as large just in 2018.

Not unusual volatility for NVDA. Fear, uncertainty, doubt, creates for transactions and that creates money for brokerages and those who profit from higher trading volumes. I swear that is one reason that half the financial press exists, to create such events every few months at minimum.

Tinker

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