NVIDIA (NASDAQ: NVDA) witnessed a sharp decrease, decreasing by 27 % of its highest level in January $ 148, which extended to a general decrease to 19 %.
This decrease has eliminated a large part of its AI’s gains from last year, which raised concerns about whether the decline indicates an opportunity to purchase convincing or a sign of long weakness.
As of the last trading session, NVIDIA was closed at $ 108.76, and gained 1.6 % a day. However, the stock is still under pressure, as it decreased by approximately 7 % for the week and 17 % during the past month.
NVDA twice the total margin of sparks
Although a strong performance is made in the fourth quarter, NVIDIA shares are pressure.
The company reported the revenues of $ 39.33 billion and the modified EPS of $ 0.89, exceeding the expected analysts of 38.05 billion dollars and $ 0.84 of the share profitability. The company also expected strong revenues of $ 43 billion, which exceeded the consensus expectations of $ 42.3 billion.
However, investor morale was strained when NVIDIA released total total expectations of 71 %, which is 72.1 % lower than Wall Street.
This frustration sparked a period of one day by 8.5 % on February 27, and more decreased in NVIDIA for more than a month, erasing approximately $ 250 billion than the maximum market and to push Under the threshold of $ 3 trillion.
The geopolitical opposite wind adds to uncertainty
Besides profits, NVIDIA faces significant geopolitical and organizational risks that can affect its long -term growth. One of the biggest concerns is ours Export restrictions On high -performance artificial intelligence chips, which are likely to reduce sales in China, which contributed 13 % of NVIDIA financial revenues 2025.
Moreover, Trump’s proposed definitions on semiconductor imports from Taiwan, where NVIDIA makes the most advanced chips, can increase costs and cause supply chain disorders, which increases uncertainty in investing investors.
The growing uncertainty has been greatly affected by the feelings of investors, which raised new concerns about the long -term NVIDIA profitability.
NVDA’s basics are still strong
Despite the short -term setbacks, the basics of NVIDIA remain strong. The NVIDIA Data Center, which now contributes 91 % of total sales, has achieved $ 35.6 billion of revenue, which represents an annual increase by 93 %.
This growth was nourished by Blackwell, AI chip of the next generation of NVIDIA, which achieved $ 11 billion revenues and witnessed the fastest adoption rate in the company’s history.
NVIDIA is still at the heart of Amnesty International’s infrastructure, where Amazon (Nasdaq: Amzn) and Meta (Nasdaq: Meta) intensified artificial intelligence investments to $ 100 billion and 60 billion dollars to $ 65 billion, respectively.
Since two of the largest NVIDIA customers, investors explain this increase in capital expenses in their expectations of the company, which still dominates the artificial intelligence chips market with a share of 70 to 95 %. Beyond AI chips, NVIDIA also expands to robots and health care, and expand their foot in high growth sectors.
Technical analysis hints in a recovery
From a technical perspective, NVIDIA was circulated within the “UP channel” pattern for nine months, According to For trading expert Tradingshot. The last correction represents the hole leg of this style, and the arrow has now reached the lower direction line, indicating a possible recovery.
Moreover, the relative strength index for one day for the share for one day is 34 years, a level of enjoying strong counterattacks over the past 11 months. Every time the RSI in NVDA reaches this range, the arrow recovered at least 26.85 %.
If this style continues, it is expected that the average goal in NVIDIA is medium -term for $ 164, and is in line with the extension of 1.236 Fibonacci, indicating a potential purchase opportunity.
Ruling: Did NVDA share?
While the sharp correction of NVIDIA raised concerns, its strong basics and long -term growth capabilities are still intact.
On March 17, the upcoming GTC conference will present a deeper look at the next stage of the company from Ai Advancements, with discussions about new products such as Blackweell Ultra and Rubin Chips, which is likely to ignite the investor’s interest.
However, for long -term investors, this decrease can provide an opportunity to buy a strategy. However, those who receive short -term gains should monitor technical levels and closer macroecides, which can keep the stock under pressure in the near -term.
Distinctive image via Shutterstock
