The semiconductor sector is in a sour mood as recession fears have mounted. Last week, news emerged that high-flying graphics chipmaker Nvidia (NASDAQ: NVDA) could see growth come to a halt in its large gaming segment. Meanwhile, the recent cryptocurrency crash has led to a glut of used Nvidia graphics chips, which are used in crytpo mining, as miners have dumped them into distributor channels.
It's Nvidia's smallest business unit right now, but explosive growth could be around the corner for the automotive segment.
Nvidia (NASDAQ: NVDA) has won big amid the graphics card shortage of the past couple of years as booming demand and tight supplies have led to inflated GPU (graphics processing unit) prices and supercharged the company's revenue and earnings growth. Let's see what's ailing the graphics card market and how a weak pricing environment could create more headwinds for this tech stock that has already lost significant ground in 2022. Demand for GPUs has outpaced supply over the past couple of years.