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Chipmaking giant Nvidia failed to move up from its losses earlier this week even as the S&P 500 broadly recovered.
Nvidia shares slipped 0.2% Friday to finish the week down around 2.4%. That is underperforming not only the broad market index, which closed only 0.04% lower week to date, but it is also lagging behind the semiconductor sector. The iShares Semiconductor ETF (SOXX) managed to finish the week up 2.4%.
Nvidia versus the SOXX ETF over the past week
Potential delays with the company’s Blackwell chips have pressured the stock, which remains 111% higher in 2024 on the back of the artificial intelligence boom.
Bank of America analyst Vivek Arya said despite Nvidia’s recent stock losses, the fundamentals remain strong and its valuation is competitive.
“I think what’s happening in the market and the volatility has nothing to do with semis. But this is where all the gains were because AI was the best game in town, and that’s why these companies saw the most drawdown also during this volatility,” Arya told CNBC’s “Squawk Box” on Friday.
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