NVIDIA Corporation (NASDAQ:NVDA) shares are trading lower after Baird downgraded the stock from Outperform to Neutral and lowered its price target from $360 to $225.
Shares of companies in the broader technology and semiconductor sectors, including Advanced Micro Devices, Inc. (NASDAQ:AMD), are also trading lower amid a rise in US Treasury yields and in sympathy with the overall market in anticipation of expected Fed rate hikes this year as the Fed seeks to curb inflation.
A more aggressive rate hike approach to curb inflation could weigh on growth stocks. The 10-year U.S. Treasury yield is again hovering around a new two-year high, which has pressured valuations in 2022. The 10-year Treasury yield hit an intraday high of 2.784% Monday morning before dipping to around the 2.700% level. When interest rates rise, the value of future cash flows is reduced for growth stocks, which in turn lower the value of the stock.
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- AMD is trading lower by 3.08% at $97.89. AMD has a 52-week high of $164.46 and a 52-week low of $72.50
- Nvidia is trading lower by 5.64% at $218.16. Nvidia has a 52-week high of $346.47 and a 52-week low of $134.59
