Designer of graphics chips, NVIDIA Corporation (NVDA), reported disappointing results for the fourth quarter and full-year 2023. Furthermore, the company is expected to face macroeconomic challenges in the near term, including supply chain disruptions, high borrowing costs, and eroding consumer spending amid inflationary and recessionary pressures.
Despite a weak performance in fiscal 2023, shares of NVDA have gained 127.1% over the past six months. Improved investor sentiment is driven by optimism about the chipmaker’s growth prospects amid the AI boom. While NVDA is making enormous efforts to boost its expansion in high-growth areas, it could be wise to wait for a better entry point in this stock due to its fundamental weakness, elevated valuation, and near-term macro headwinds.
