Why Nvidia's price action hasn't been 'a knockout blow'
03/20/2024 04:00
As Nvidia's (NVDA) GTC conference continues, Moor Insights & Strategy CEO Patrick Moorhead joins Yahoo Finance Live to discuss the minimal stock reaction to the event. Moorhead believes that although investors expected "a knockout blow," the muted price action reflects investors' concerns about how Nvidia's new products stack up against competitors' offerings. Moorhead notes that Nvidia's new chip is essentially "two chips stitched together," creating a costlier product. While the new lineup may be more expensive, the company will deploy a "good, better, best" strategy, keeping all chip variants on the market. Despite Nvidia's dominant market share, Moorhead raises concerns about the sustainability of this position if the company fails to grow its market share further. He suggests that without continued market share growth, it might be challenging for Nvidia to maintain its current dominance. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Angel Smith
As Nvidia's (NVDA) GTC conference continues, Moor Insights & Strategy CEO Patrick Moorhead joins Yahoo Finance Live to discuss the minimal stock reaction to the event.
Moorhead believes that although investors expected "a knockout blow," the muted price action reflects investors' concerns about how Nvidia's new products stack up against competitors' offerings. Moorhead notes that Nvidia's new chip is essentially "two chips stitched together," creating a costlier product. While the new lineup may be more expensive, the company will deploy a "good, better, best" strategy, keeping all chip variants on the market.
Despite Nvidia's dominant market share, Moorhead raises concerns about the sustainability of this position if the company fails to grow its market share further. He suggests that without continued market share growth, it might be challenging for Nvidia to maintain its current dominance.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Angel Smith