5 Stocks Most Vulnerable to Recession

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 102

NVIDIA Corporation (NASDAQ:NVDA) is a Santa Clara, California-based tech company that provides computing, graphics, and networking solutions to various industries like gaming, healthcare, and transportation.

Goldman Sachs sees NVIDIA Corporation (NASDAQ:NVDA) as one of the stocks that have the most to lose in case of a deep recession. On July 15, Toshiya Hari at Goldman Sachs decreased the price target on NVIDIA Corporation (NASDAQ:NVDA) from $192 to $166 and reiterated a Neutral rating on the stock. The revised target price only provides a modest upside of 5.3% from the closing price as of July 15. Hari slashed his estimates and the target price to reflect the worsening macroeconomic and operating environment for the chip makers along with weak industrial data. During June, US video game spending related to accessories, content, and hardware fell by 11% YoY to $4.3 billion.

ClearBridge Investments
shared its stance on NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2022 investor letter. Here’s what the firm said:

“Gaming is an attractive end market within the media/technology sector with strong growth and a long runway, particularly in mobile gaming. Unity’s platform provides an engine and toolkit for development and monetization of games, e-commerce and industrial applications, adding to our industry exposure, which also includes Nvidia (NASDAQ:NVDA) in graphic processing chips.”

Overall, 102 hedge funds held a stake in NVIDIA Corporation (NASDAQ:NVDA) at the end of Q1 2022, down from 110 in the preceding quarter.