Seemingly without any company-specific news to justify it, traders dumped Nvidia (NASDAQ:NVDA) stock this morning. Indeed, NVDA stock is down about 4% at the time of writing. However, a deeper dive will uncover less-than-stellar reviews of GeForce GTX 1630, Nvidia’s new low-cost graphics card.
Sure, there’s been a tech-stock rout in 2022’s first half. However, this alone shouldn’t fully account for today’s immediate drop in the Nvidia share price. After all, the Nasdaq was barely down this morning. So, it’s not as if traders were dumping tech stocks wholesale.
Why, then, would NVDA stock lose roughly 3% of its value right out of the gate? At first glance, there didn’t seem to be any negative company-specific news today. Inquiring minds, however, will always endeavor to dig beneath the surface. And as it turns out, there’s something less-than-inspiring happening with Nvidia lately.
Specifically, Nvidia quietly introduced its budget-priced GTX 1630 graphics card yesterday. And when I say, “quietly,” I’m not exaggerating. Indeed, Nvidia didn’t even announce the event on its press releases page. Some folks might already consider this to be a bad sign. After all, Nvidia should be proud to release an affordable GPU. Right?
Maybe yes, maybe no. Already, there have been less-than-ideal reviews for the GTX 1630. For instance, Nael Grewther noted Nvidia’s “many launch date delays” and opined that “the graphics cards don’t have anything special.”
A Bad Day for NVDA Stock
Meanwhile, Gizmodo’s Phillip Tracy suggested that the GTX 1630 isn’t great for gaming, which is oftentimes the intended use of Nvidia’s graphics cards. In defense of this position, Tracy declared, “The card struggled across every gaming benchmark, failing to reach 30 frames per second on most tests and averaging just 24 fps at 1080p settings across the wide range of titles.”
PCWorld’s Michael Crider also struck hard at the GTX 1630, dubbing it “the weakest card with a GTX label by a wide, wide margin” and asserting that it “really shouldn’t be a consideration for anyone who’s interested in gaming.” TechRadar’s Christian Guyton also piled on, stating that the GTX 1630 is “not very impressive” as far as specs go. Specifically, the “power consumption and VRAM are basically identical to the original GTX 1650, but the memory bandwidth is cut in half and the die uses fewer CUDA cores too,” according to Guyton.
All in all, it’s been rough going for Nvidia as a GPU producer today, and for NVDA stock holders. It will be interesting to see if Wall Street soon forgives and forgets the lackluster debut of Nvidia’s apparently cheap but underwhelming new graphics card.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.