Nvidia stock (NASDAQ: NVDA) took a beating on Tuesday, falling below a key support level and wiping out roughly $340 billion in market value.
Investors are clearly jittery as tech in general has been shaky, and Nvidia’s run this year, which felt unstoppable, suddenly looks more fragile.
A week ago, everyone was talking about it as a top performer; today, the mood has shifted fast. No one’s claiming this is the end for the chipmaker, but it’s a sharp reminder that the market can turn on a dime.
Nvidia stock: Breaking below key technical levels
Nvidia stock had been flying high in mid-August, hitting new peaks, but lately the stock’s been taking it on the chin.
By September 2, it was hovering around $174, down over 6% from that $183 high just a couple of weeks back.
The drop pushed it under the 50-day moving average, a number traders obsess over (and for good reason).
Crossing that line usually sets off warning lights for some folks, suggesting the stock might drift lower or just hang around sideways for a bit.
Trading volume spiked on the sell-off, showing that a lot of investors were moving around fast.
Market chatter points to a broader tech slump as folks are worried about slowing semiconductor demand and the cyclical swings in Nvidia’s core GPU business, especially in gaming and data centers.
On top of that, some analysts are nervous that the AI-driven frenzy that fueled Nvidia’s rally earlier this year might be starting to cool off.
What analysts say?
Analysts are starting to get cautious after Nvidia stock sudden drop.
Morgan Stanley, for example, just moved the stock from “overweight” to “equal weight,” pointing to growing uncertainty around AI-driven sales and some inventory adjustments in the semiconductor supply chain.
The bank says the recent pullback looks like the stock hitting a valuation ceiling, prompting growth investors to take some profits off the table.
JPMorgan is sounding similar notes, flagging supply-demand mismatches and broader macro pressures as short-term but meaningful headwinds.
The bank expects Nvidia’s data center revenues could ease in the coming quarters as AI infrastructure spending starts to plateau.
Still, analysts are keeping a long-term positive view, pointing to Nvidia’s tech edge and diverse product lineup as buffers that could help the company ride out near-term volatility and cyclic swings, setting the stage for a potential rebound in valuation down the line.
A few technical analysts are flagging the break below $175 as a signal for investors to stay alert as there could be more downside, or the stock might stabilize if it finds support around $165–$170.
Nvidia has bounced back from short-term pullbacks before, but right now the backdrop isn’t exactly friendly: interest rate jitters and geopolitical issues affecting supply chains add extra risk to the mix.
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