Nvidia shares fall 3.7%, hitting lowest level since March 2024
Nvidia shares fell 3.7%, hitting their lowest level since March 2024. Concerns over the semiconductor giant's near-term prospects and weakening relative performance contribute to investor caution. Recent reductions in bullish price targets and limited profitability due to supply constraints may have also impacted the stock's decline. Despite this, Nvidia remains optimistic about the future of artificial intelligence.
Nvidia shares fall 3.7%, hitting lowest level since March 2024
Nvidia (NVDA) shares tumbled 3.7% on Thursday, dipping below the crucial 50-day moving average and hitting their lowest level since March 2024. This marked a significant sell signal for investors, highlighting growing concerns over the semiconductor giant's near-term prospects (1).
If you are still holding Nvidia stock, it is essential to note that a clear break below the 50-day moving average could trigger a more significant sell-off, especially if trading volume increases. This is because the stock is also undercutting its base and has yet to display a clear rebound (1).
The broader technology market, as represented by the Nasdaq, is also facing headwinds, with the index falling below its 50-day moving average on Monday. However, Nvidia's relative performance appears to be weakening more significantly, with its relative strength line flattening (1).
Despite these concerns, Nvidia remains optimistic about the future of artificial intelligence (AI) and its role in social elevation. The company's CEO, Jensen Huang, recently addressed students at his alma mater, Oregon State University, emphasizing AI's potential impact (1). Huang also discussed Nvidia's new AI chip, Blackwell, at a conference for AI developers in March (1).
However, recent bullish price targets from analysts seem to have lost momentum, with analysts at Truist, HSBC, and Bank of America recently reducing their targets (1). This may suggest that investors are becoming more cautious about the stock's near-term prospects.
Nvidia's fourth-quarter earnings report, which showed strong revenue growth but limited profitability due to supply constraints, may have also contributed to the stock's recent decline (1).
In summary, Nvidia's shares dipped below their 50-day moving average, marking a significant sell signal and a 17-month low for the stock. While the company remains optimistic about AI's potential, recent developments may suggest that investors are becoming more cautious about the stock's near-term prospects.
References:
1. [https://www.investors.com/research/nvda-stock-is-nvidia-a-buy/]
