Nvidia (NVDA) Stock: Shares Fall 5.1% In Tech Meltdown, What’s Next?

Nvidia (NVDA) Stock: Shares Fall 5.1% In Tech Meltdown, What’s Next?

TLDR

• Nvidia stock fell 5.1% to $106.98 on Monday, reaching its lowest close since September 9
• NVDA has lost 20% this year despite strong AI demand, partly due to market concerns over Trump’s tariff plans
• Taiwan Semiconductor Manufacturing, Nvidia’s contract manufacturer, reported February sales up 43% year-over-year
• Technology shares suffered their biggest one-day plunge since 2022, with the Nasdaq 100 Index falling 3.8%
• The tech selloff wiped out more than $1 trillion in value, with Tesla tumbling 15% and Nvidia erasing over $1 trillion in market value in two months

Nvidia shares fell sharply on Monday as part of a broader technology selloff. The stock dropped 5.1% to close at $106.98, its lowest level since September 9.

This decline comes despite several indicators suggesting continued strong demand for the company’s artificial intelligence products. The drop marks another step in Nvidia’s ongoing market correction in 2025.

Nvidia has now lost 20% of its value this year. This represents the stock’s worst start-of-year performance since 2022, when shares fell 27% in the same period.

The broader market also struggled on Monday. The benchmark S&P 500 index was down 2.7% for the day.

Market concerns about President Donald Trump’s proposed tariff plans appear to be weighing on Nvidia. These geopolitical uncertainties have overshadowed otherwise positive business developments for the chipmaker.

Melius Research analyst Ben Reitzes maintained a Buy rating on Nvidia. However, he lowered his two-year target price to $170 from $195.

“At this point, we believe Nvidia and several others in the AI semis and hardware space are on sale and good buys right now,”

Reitzes wrote in a research note. He cautioned that near-term performance might remain challenging due to regulatory and geopolitical uncertainties.

Nvidia’s current valuation sits at 24.2 times expected earnings over the next 12 months. This is notably below the company’s five-year average of 40 times earnings.

Taiwan Semiconductor Manufacturing, which manufactures Nvidia’s AI chips, reported strong February results. The company’s sales increased 43% compared to the same month last year, indicating robust demand for AI hardware.

In another positive development, Nvidia has helped Hon Hai Precision Industry (known internationally as Foxconn) develop its own large-language AI model. Foxconn announced on Monday that Nvidia supported the development of its FoxBrain AI model through its Taiwan-based supercomputer and technical consulting.

Looking ahead, Nvidia’s GPU Technology Conference next week could provide a catalyst for the stock. CEO Jensen Huang is scheduled to deliver a keynote speech on March 18.

Melius’s Reitzes expects Nvidia to present “a clear GPU innovation roadmap” at the conference. This will likely include details on upcoming products like “Blackwell Ultra,” the “Rubin” GPU for 2026, and its Arm-based CPU called “Vera.”

The tech selloff on Monday was widespread and severe. The Nasdaq 100 Index plunged 3.8%, erasing more than $1 trillion in market value in a single day.

The Bloomberg Magnificent 7 Index, which tracks the biggest US tech stocks, tumbled 5.4%. This brought its decline from a December record to more than 20%, officially entering bear market territory.

Tesla was hit particularly hard, falling 15% on Monday. This extended Tesla’s year-to-date loss to 45%.

Meanwhile, Nvidia has now erased more than $1 trillion in market value over just two months, highlighting the dramatic shift in investor sentiment toward tech giants.

The market turmoil intensified after weekend comments from President Trump and his administration suggested the American economy might be slowing. This contrasted with campaign promises of tariffs that would fund tax cuts without disrupting economic growth.

Despite the current pullback, Nvidia remains the dominant provider of artificial intelligence chips under CEO Jensen Huang’s leadership. The company’s upcoming conference may provide more clarity on its product roadmap and future growth prospects.

The post Nvidia (NVDA) Stock: Shares Fall 5.1% In Tech Meltdown, What’s Next? appeared first on CoinCentral.