Fed Chair Powell Warns of Inflation Risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 13 hours ago
0mins
Should l Buy NVDA?
Source: Yahoo Finance
- Inflation Concerns Intensify: Fed Chair Jerome Powell indicated that rising inflation could force the Fed to raise its benchmark interest rate from the current 3.5% to 3.75%, which would negatively impact the economy and financial markets, potentially leading to a recession.
- Policy Uncertainty: Although the Fed decided to keep interest rates unchanged at its latest meeting, there is significant disagreement among members regarding future rate changes, with some expecting no adjustments this year, highlighting the high uncertainty surrounding economic developments.
- Rising Debt Costs Impact: An increase in interest rates would raise borrowing costs, likely reducing investor aggressiveness and making Treasury bills more attractive, which could adversely affect stock market performance, particularly against the backdrop of rising spending from AI companies.
- Market Reaction Expectations: Powell's warnings may put pressure on the stock market in the short term, as controlling inflation could stabilize the economy in the long run, but the immediate volatility in the market may increase.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 171.240
Low
200.00
Averages
264.97
High
352.00
Current: 171.240
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 Demand and Challenges: While the concept of space data centers garners interest, practical implementation faces high launch costs and technical hurdles, with Nvidia's advancements potentially serving as a first step in overcoming these obstacles.
- Partnerships: Nvidia collaborates with several space tech companies, including Starcloud, which successfully launched the first satellite operating an Nvidia H100 GPU in space, showcasing its strategic positioning in the space market.
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