Editing NVIDIA Corporation
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=== Macro sensitivity === | === Macro sensitivity === | ||
US Semiconductor companies are sensitive to economic conditions and market activities, with high beta. S&P 500 and SOX are heavily correlated. Nvidia has a high beta of 1.75<ref>https://finance.yahoo.com/quote/NVDA?p=NVDA</ref> which measures the sensitivity to the market activity. This strong correlation indicate the performance of the semiconductor companies being heavily influenced by the general market activies, being affected by macroeconomic factors including the monetary policies, inflation rates, federal funds rate and many more. [[File:Sox.png|thumb| | US Semiconductor companies are sensitive to economic conditions and market activities, with high beta. S&P 500 and SOX are heavily correlated. Nvidia has a high beta of 1.75<ref>https://finance.yahoo.com/quote/NVDA?p=NVDA</ref> which measures the sensitivity to the market activity. This strong correlation indicate the performance of the semiconductor companies being heavily influenced by the general market activies, being affected by macroeconomic factors including the monetary policies, inflation rates, federal funds rate and many more. [[File:Sox.png|thumb|610x610px|SOX<ref>https://www.nasdaq.com/market-activity/index/sox/historical</ref>vs S&P500<ref>https://www.wsj.com/market-data/quotes/index/SPX/historical-prices</ref>|none]] | ||
=== Philadelphia Semiconductor Index (SOX) === | === Philadelphia Semiconductor Index (SOX) === | ||
Philadelphia Semiconductor Index (SOX) measures the performance of 30 largest United States semiconductor companies involved in the distribution, manufacturing and design of the product. Nvidia has the largest market capitalisation with $1.11T and second highest trailing price to earnings ratio of over 235. | Philadelphia Semiconductor Index (SOX) measures the performance of 30 largest United States semiconductor companies involved in the distribution, manufacturing and design of the product. Nvidia has the largest market capitalisation with $1.11T and second highest trailing price to earnings ratio of over 235. |