The stock price on an Nvidia (NVDA) chart is usually known for being up and to the right.
That’s not the case right now as the post-earnings Nvidia sell-off rages on.
Nvidia stock is down 9.8% since the company’s fourth quarter earnings results on Feb. 26. The sell-off has extended Nvidia’s tumble from its mid-January 52-week high to 24%.
Shares have dropped below the key 50-day, 100-day, and 200-day moving averages as sentiment on the momentum name sours.
“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,” Evercore ISI head of technical analysis Rich Ross told me.
Read more: How does Nvidia make money?
Ross pointed out that Nvidia’s stock is holding the DeepSeek sell-off lows of around $114, hit in early February. Ross said he owns Nvidia and remains a buyer and a believer in the company — but if the DeepSeek lows are breached, he would be “less sanguine.”
“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,” he added.
To be sure, Nvidia’s latest earnings unleashed the bears on its stock.
The company said it expects gross profit margins of 70.6% to 71% in the first quarter as it contends with the production ramp-up of its new Blackwell chip.
The margin outlook was lighter than some pros expected, EMJ Capital founder Eric Jackson told me on Yahoo Finance’s Opening Bid podcast (video above; listen in below).
On the company’s earnings call, Nvidia execs sought to push back against the bears, who fear there will be a digestion period for AI investments by hyperscalers such as Amazon (AMZN) and that Nvidia’s margins may have peaked.
“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,” Nvidia founder and CEO Jensen Huang said. Huang teased several new powerful chips to be unveiled at the company’s March 17 GTC conference.
Juang’s view is shared by the longer-term investors who are staying patient on Nvidia amid the sell-off.
“I think that you’re going to hear a lot more about these infrastructure build-outs from nation-states,” a16z generator partner and Mistral AI board member Anjney Midha told me on Opening Bid. “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.”
