NVIDIA Slides Despite Bullish Analyst Revisions
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Stock Market Today: Dow edges lower
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Nvidia's stock was falling 3.2% in recent trading, enough to push it below its 20-day moving average ($178.49) -- a short-term trend tracker -- for the first time since April 23. That snaps an 80-session streak above the 20-DMA,
Nvidia ( NVDA) may be the market's biggest AI stock, but institutional investors are still shying away. "NVDA is now the most under-owned large-cap tech stock," Morgan Stanley analyst Erik Woodring wrote in a note.
The sudden reversal shows how the hottest AI trade and top-performing stock of the year is colliding with a broader market rotation out of Big Tech.
The S&P 500 slipped 0.4% and is on track for a third straight modest loss after setting its all-time high last week. The Dow Jones Industrial Average was up 8 points, or less than 0.1%, as of 11:50 a.m. Eastern time, and the Nasdaq composite was down 1%.
Nvidia Corporation stock tumbled 3.5% on Tuesday, wiping out $155 billion in market capitalization. Nvidia stock logged its worst day since April 21 and seemingly also resulted from a broader market selloff as the drop four months ago.
Just four Big Tech stocks — Nvidia, Microsoft, Meta, and Broadcom — account for 60 percent of the benchmark index’s total returns so far this year, according to a new analysis from DataTrek Research. They’re also responsible for pushing headline valuation levels to dot-com bubble levels.
Nvidia stock was slightly down in early trading following a report it is developing a new chip for the Chinese market.
Nvidia is set to beat expectations, with strong revenue forecast of $48b for Q2 and expected growth through 2026, driven by demand for AI and new Blackwell architecture.
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