Nvidia: The Inflation-Recession One-Two Punch


  • Persistent inflationary headwinds, with an added side of geopolitical madness, has cost Nvidia as much as 60% of its market value this year.
  • Short-sellers of the stock have reaped more than $3 billion in related mark-to-market gains this year, and they likely still have the upper hand as market conditions deteriorate.
  • Despite signs of gradual recovery since its mid-October trough, the stock has succumbed to another round of steep market selloffs last week as investors brace for an impending recession.
  • The following analysis will dive into what is in store for Nvidia heading into 2023, as looming recession risks add to existing inflationary turmoil observed in its weakening fundamentals.

Nvidia Corporation building in Taipei, Taiwan.


Nvidia’s stock (NASDAQ:NVDA) has lost more than 40% of its value this year, as its lofty valuation premium to peers continues to topple on persistent inflationary pressures that have eroded consumer demand for devices and solutions powered by the

Disclosure: I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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