NVIDIA Corporation NVDA just announced a new line of graphics chips, but Ritholtz Wealth Management's Josh Brown says new product lines won't be enough to pull the stock out of its recent slump.
"The new gaming chip is great, but this stock has been locked in a pretty substantial downtrend and there's nothing telling me that that's at its end, unfortunately," Brown said Tuesday on CNBC's "Fast Money Halftime Report."
What To Know: Nvidia on Tuesday introduced its newest "Ada Lovelace" series of graphics chips, which use AI to improve graphics in video games.
Brown acknowledged the announcement as a positive, but he continued to focus on Nvidia's bearish technical trend.
"This is a stock that's now trading back to where it was in September of 2020, so all of the benefits of stay-at-home, of more gaming, of crypto, all of the things that were fueling Nvidia's share price, including the bubble in growth stocks, is gone," Brown said.
"But what hasn't gone is the fact that this company's fundamentals have only gotten better."
He told CNBC that the stock is actually cheaper than it was when it was trading at the same price two years ago.
"But if you are looking at this as like a short-term trade, we're not there yet," Brown said.
As previously reported by Benzinga, Nvidia printed a bullish hammer candlestick at the beginning of the month, but the stock was unable to break up from the inside bar pattern it was forming. The bar pattern pointed to a continued bearish trend as Nvidia shares were trading lower before forming the pattern.
Brown told CNBC that he doesn't see anything that indicates a trend change in the near term.
NVDA Price Action: Nvidia is down 23% over the last month and has fallen more than 55% year-to-date.
The stock was down 1.58% at $131.75 Tuesday afternoon.
Photo: Courtesy of Nvidia
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