Nvidia (NVDA) experienced a significant drop on Friday, falling below its 50-day average as the broader market also retreated. The stock has fallen about 22% from its high in March as of Friday afternoon. Shares of Nvidia, the AI chip giant, dropped 10% to 761 in late afternoon trading, following a market slide. This decline in Nvidia stock mirrored the performance of Super Micro Computer (SMCI) stock, both of which showed sell signals in Friday trades.
As the top AI-chip maker, Nvidia has been a significant player in the artificial intelligence boom, reaching a high of 974 on March 8 before beginning to fade on March 26, when it traded at 298.06. However, this recent decline marks a clear sell signal for investors to consider locking in profits or closing a position completely. With the drop below its 10-week moving average, it is evident that Nvidia’s momentum has shifted and investors may want to reevaluate their positions in this company.
