Analysis of Investor Sell-off in Software Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy NVDA?
Source: Fool
- Market Sell-off Trend: Recently, investors have sold off shares of software companies due to concerns about the potential impact of artificial intelligence on software demand, leading to widespread declines in stock prices and reflecting market worries about future profitability.
- Nvidia CEO's Warning: Nvidia CEO Jensen Huang stated that the belief AI will completely replace software is 'illogical', asserting that AI should enhance existing tools rather than replace them, which could improve business efficiency.
- Nvidia Financial Performance: Over the past 12 months, Nvidia has generated nearly $100 billion in profits, showcasing its strong growth in the AI sector, although its stock price has experienced fluctuations, the market remains optimistic about its future prospects.
- Software Stock Investment Opportunities: Salesforce and Adobe are trading near multi-year lows, and while there are risks involved, this could present an appealing buying opportunity for value-seeking investors looking for contrarian investments.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 190.040
Low
200.00
Averages
264.97
High
352.00
Current: 190.040
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Sell-off Trend: Recently, investors have sold off shares of software companies due to concerns about the potential impact of artificial intelligence on software demand, leading to widespread declines in stock prices and reflecting market worries about future profitability.
- Nvidia CEO's Warning: Nvidia CEO Jensen Huang stated that the belief AI will completely replace software is 'illogical', asserting that AI should enhance existing tools rather than replace them, which could improve business efficiency.
- Nvidia Financial Performance: Over the past 12 months, Nvidia has generated nearly $100 billion in profits, showcasing its strong growth in the AI sector, although its stock price has experienced fluctuations, the market remains optimistic about its future prospects.
- Software Stock Investment Opportunities: Salesforce and Adobe are trading near multi-year lows, and while there are risks involved, this could present an appealing buying opportunity for value-seeking investors looking for contrarian investments.
See More
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- Market Reaction: Jumia's stock plummeted 15.8% on a day when the S&P 500 and Nasdaq fell by 0.4% and 0.6%, respectively, reflecting investor concerns over its profitability outlook.
- Valuation Insights: Even with the stock's decline, Jumia maintains a market capitalization of approximately $1.27 billion, valued at about 5.2 times this year's expected sales, suggesting it may be undervalued based on its sales growth rate.
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