Nvidia Extends Losses After Bitcoin Overnight Flash Crash

  • NASDAQ:NVDA fell 3.21% in Friday’s trading session.
  • Cryptocurrency markets plummet overnight as Russia threatens to pull out.
  • Intel is making a major investment in chip production in the United States.

NASDAQ: NVDA investors are getting used to seeing the color red after a year in 2021 where all they saw was green. On Friday, NVDA shares fell 3.21% and closed the last trading day of the week at $223.74.. Semiconductor stocks continued to take a beating on Friday as analyst downgrades and general tech weakness continue to weigh on the sector. The NASDAQ index fell again, losing 2.72% and moving it more than 14% from its recent all-time highs. NVIDIA peers like AMD (NASDAQ:AMD) and Marvell Technologies Inc (NASDAQ:MRVL) were also down, losing 2.53% and 1.69% respectively to end the week.

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One of the reasons NVIDIA and other chip companies may fall on Friday is the sudden crash in cryptocurrency markets overnight. The crash is believed to have been caused by the Bank of Russia calling for a new ban on cryptocurrencies, including mining and trading digital currencies. So far, the crypto crash has erased $1 trillion from the overall market capitalization as Bitcoin lost over 12% to fall below $36,000. NVIDIA’s GPU chips are widely used to mine cryptocurrencies, so another major market banning them could see an impact on NVIDIA’s revenue.

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Another NVIDIA competitor, Intel (NASDAQ:INTC), has announced that it will invest heavily in the US chip manufacturing industry. The company plans to spend at least $20 billion on two new production plants in Ohio. Intel is trying to mitigate any future chip shortages that have had a significant impact on global production over the past two years. Intel shares rose early but closed the session unchanged.

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Eleanor C. William