NVIDIA Stock Price Hits a 52-Week Low – Buy More?

For those of you fortunate enough not to be tainted by a career in finance, you may be surprised to hear how the sausage gets made. Let’s take a stock like NVIDIA Corporation (NVDA). There are analysts out there who are paid to “cover” NVIDIA by issuing recommendations as to whether or not you ought to be buying or selling based on particular price targets. These sorts of people try and make themselves look as good as possible in the eyes of the public, and like to use lots of CYA terminology like “cautiously optimistic”. The reason these analysts feel comfortable about making stock price predictions is that they spend a majority of their lives putting together sophisticated spreadsheet models that justify their price targets. These price targets along with Earnings-Per-Share (EPS) estimates then become expectations that a publicly traded firm needs to live up to, or else.

NVIDIA’s Expectations

As a retail investor, you’re better off investing with a “set it and forget it” approach while taking note of any large price swings that signal good news or bad news. You can then gauge the severity of the newly-available information by doing a bit of due diligence. That way, you’re aware of any problems with your holdings and can continue sleeping well at night. Hopefully. In the case of NVIDIA, we’re long-term longs who were surprised to see shares tanking this morning to reach a new 52-week low of around $161 per share. To put this into perspective, the NVIDIA stock price reached a new high of $292 a share just a few months back and has since fallen nearly -43%.  Today&