Nvidia Stock Faces Turbulence: What the Charts Reveal Amid Ongoing Sell-Off

As the sell-off in Nvidia’s stock continues, market analysts are weighing in on the implications for investors. Rich Ross, head of technical analysis at Evercore ISI, remains optimistic despite the recent downturn. He stated, “I am not throwing in the towel on Nvidia and don’t think we are broken [on the charts] as we speak — shaken, not stirred.” This sentiment reflects a cautious optimism among some investors, as Nvidia’s stock has managed to hold around the critical support level of $114, which was established in early February.

Current Market Sentiment on Nvidia

Ross, who personally owns Nvidia shares, expressed his belief in the company’s long-term potential. However, he cautioned that if the DeepSeek lows are breached, his outlook would become less favorable. He noted, “We have all been spoiled coming off the bear market lows by one-way markets. Nvidia was its leader. Net net, not broken, but not great in recent months.” This statement underscores the mixed feelings surrounding Nvidia’s stock performance.

Company’s Response to Market Concerns

During a recent earnings call, Nvidia executives addressed concerns from bearish analysts who fear a potential digestion period for AI investments by major players like Amazon. They emphasized the ongoing high demand for their products, with CEO Jensen Huang stating, “We’re going to have to continue to scale as demand is quite high, and customers are anxious and impatient to get their Blackwell systems.” Huang also hinted at several new powerful chips set to be unveiled at the upcoming GTC conference on March 17.

Industry Insights and Predictions

Industry experts like Anjney Midha, a partner at a16z generator and board member of Mistral AI, suggest that the current market dynamics may be influenced by broader geopolitical factors. Midha remarked, “I think that you’re going to hear a lot more about these infrastructure build-outs from nation-states. Sometimes these are lagging indicators. It might be underreported on — it just takes a while for people to realize that nation-state priorities are then turning into enterprise budgets.” This perspective highlights the potential for future growth in the AI sector, driven by government investments.

Nvidia’s Year-to-Date Performance

Despite the optimistic outlook from some analysts, Nvidia’s stock has faced significant challenges this year. As of now, shares are down nearly 13% year-to-date, marking the company’s worst monthly performance in February since July 2022. Bernstein analyst Stacy Rasgon noted, “It’s been a rough year for NVDA so far…The stock (along with many of its AI-semi peers) has suffered, battered by a storm of growth fears, supply chain noise, and other market pressures.”

Challenges in the AI Chip Market

Recent reports have highlighted issues within the AI chip market, including delivery problems and missed deadlines from companies like CoreWeave, which is preparing for a $35 billion IPO. Additionally, custom AI chipmaker Marvell Technology has faced challenges, as indicated by their recent earnings report. Raymond James analysts commented that Marvell’s fourth-quarter earnings and guidance were “more modest than we anticipated, which is a surprise given the strong results from peers.”

Impact on Competitors and the Broader Market

The challenges facing Nvidia are not isolated; other companies in the semiconductor space are also feeling the impact. Broadcom saw a 5% drop, while Advanced Micro Devices fell by 2%. Other notable declines included British chip architecture designer Arm, which dropped 4%, and Micron, which sank 3.5%. These trends suggest a broader struggle within the tech sector, particularly among companies involved in AI and semiconductor manufacturing.

Future Prospects for Nvidia

Despite the current turbulence, Nvidia’s position in the AI market remains strong, particularly as tech giants like Microsoft, Meta, Google, and Amazon continue to invest heavily in AI technologies. TSMC and Apple have also announced significant investments in the U.S. to expand their manufacturing footprint for AI chips and servers. As the market evolves, Nvidia’s ability to adapt and innovate will be crucial in determining its future success.

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