The S & P 500 has been on fire in 2024, reaching new heights and breaking the 5,500 level for the first time. However, despite this impressive performance, there are certain stocks within the index that could be facing a significant decline in the second half of the year.
Nvidia, a leader in artificial intelligence, has seen its stock price more than double in 2024. It briefly held the title of the most valuable public company, surpassing even Microsoft. However, analysts are wary of a potential pullback, with consensus price targets suggesting an 11% decline. Rising competition in the AI sector could be a major factor contributing to Nvidia’s potential fall from grace.
Chipmaker Qualcomm has also experienced significant growth in 2024, with its stock climbing nearly 47%. The company’s strong financial results and outlook have been a driving force behind its performance. However, analysts are cautious about Qualcomm’s future, with price targets indicating a possible 14% decline. The competitive nature of the semiconductor industry, coupled with the overall strength of chip stocks, could be challenging for Qualcomm moving forward.
In addition to Nvidia and Qualcomm, other S & P 500 constituents such as Garmin and Teradyne are also potentially facing a pullback. These companies have had significant gains in 2024, but analysts believe that they may have gotten ahead of themselves. The overall market environment, including factors such as competition and market trends, could contribute to a decline in these stocks in the coming months.
While the S & P 500 has been performing well overall, there are certain stocks that investors should be cautious about in the second half of 2024. Nvidia, Qualcomm, Garmin, and Teradyne are all potential candidates for a decline based on analysts’ price targets and market conditions. It will be crucial for investors to closely monitor these stocks and adjust their portfolios accordingly to mitigate any potential losses.