Nvidia shares fell to their lowest level since December, falling about 20% from all-time highs as an accelerating rotation from growth to value pushed the world’s most valuable company into bear market territory.
Similarly, Palantir shares fell to $130 as predicted by crypto.news before its gains.
Summary
- NVIDIA’s stock price fell into a bear market on Thursday.
- There are signs that investors are dumping growth stocks.
- Technical analysis points to a drop to $150.
Why is Nvidia not working?
Nvidia’s current stock decline mirrors that of other growing companies. For example, AMD, its main competitor, fell to $194, down 27% from its December high.
The software sector fell into a technical bear market, with the iShares Expanded Tech Software ETF (IGV) falling more than 20% as investor anxiety around AI disruption fueled what some are calling a “SaaSpocalypse.” Fears that autonomous AI agents could replace traditional software licenses have weighed on stocks like Palantir, which continued to sink.
Wedbush analyst Dan Ives rejected the pessimism, calling the sell-off a “software garage sale” and arguing that the market is pricing in an unrealistic apocalyptic scenario. Ives said enterprise software remains deeply entrenched, citing data security risks and migration costs. He named Palantir, Microsoft, Snowflake, Salesforce and CrowdStrike as long-term winners despite the recent panic.
On the other hand
Value companies are doing well, with the Vanguard Value ETF and the Schwab US Dividend ETF (SCHD) rising nearly 10% this year. All are trading at their all-time highs.
Nvidia shares have plunged as traders reflect on key concerns. For example, there are concerns about whether big tech companies will continue to spend. These concerns accelerated after Microsoft’s report showed its cloud revenue slowed in the fourth quarter. Its shares have fallen to $400, 27 below its all-time high.
Therefore, there is a risk that the company and other major hyperscalers will begin to cut their expenses to please investors concerned about return on investment.
NVIDIA shares have plunged as investors remain concerned about its Chinese business. A report of the Financial times He said the Trump administration was still conducting a review of H200 chip sales to China. Beijing has allowed ByteDance, Tencent and Alibaba to buy 400,000 chips.
At the same time, Nvidia’s biggest customers are working on their own ASIC chips. Google is working on its TPU chips, while Amazon, Microsoft and OpenAI hope to launch theirs soon. This development may lead to competition and lower sales in the long term.
The next key catalyst for Nvidia’s share price is its financial results, which will provide more information about its business. Analysts anticipate its revenue to reach $67 billion, more than 50% higher than in 2024. Its annual revenue is expected to exceed $500 billion by 2027 or 2028.
NVIDIA Stock Price Technical Analysis
The daily chart shows NVDA stock price flashing red signals. It has formed a head and shoulders pattern and is now at the neckline. This is one of the most common bearish reversal signs.
It has moved below the 23.6% Fibonacci retracement level. Furthermore, it retreated below the 50-day moving average and the Supertrend indicator. Therefore, the most likely forecast is for it to continue falling, potentially to $150, the 50% retracement level.
