Key Highlights:
NVIDIA Corp. (NASDAQ: NVDA) shares took a sharp hit today, with the NVIDIA stock price falling 6.75% to $94.93 as of 2:10 PM ET. This marks a substantial daily loss of $6.87 from the previous close of $101.80, wiping billions off NVIDIA’s market cap and putting pressure on the broader tech-heavy Nasdaq.
The downturn reflects a sudden reversal in sentiment around AI chip stocks, which have been leading the 2024 market rally. But today’s pullback suggests investors are re-evaluating valuations and pricing in broader macro risk.
April 4: NVIDIA Stock Key Figures
| Metric | Value |
|---|---|
| Opening Price | $98.91 |
| Day’s High | $100.13 |
| Day’s Low | $92.11 |
| Current Price | $94.93 |
| Previous Close | $101.80 |
| Market Cap | $2.31L Cr |
| P/E Ratio | 32.31 |
| Dividend Yield | 0.042% |
| 52-week High/Low | $153.13 / $75.61 |
Why Did NVIDIA Stock Price Fall Today?
1. AI Hype Exhaustion
- Investors are increasingly skeptical about whether AI chip demand can sustain the meteoric rise seen in recent quarters.
- Analysts caution that earnings and guidance must continue to impress to justify NVIDIA’s lofty valuation.
2. Tech Market Sell-Off
- Major indices, including the Nasdaq and Dow, are down sharply today.
- Higher bond yields, inflation pressure, and weak economic data triggered a sell-off across high-growth names.
3. Profit-Taking After Monster Run
- NVDA surged over 50% in Q1 alone, making it one of the hottest stocks of the year.
- Traders appear to be booking profits, especially as uncertainty looms ahead of earnings season.
Analyst Reactions
“Today’s drop is less about fundamentals and more about AI fatigue. NVIDIA remains a long-term winner, but short-term positioning was stretched,”
— Chris Caso, Raymond James
“It’s a healthy correction. The rally was too fast, too far. This flush-out could reset sentiment heading into earnings,”
— Toni Sacconaghi, Bernstein
Despite the steep drop, most analysts maintain a bullish long-term view on NVIDIA, citing its dominant position in AI data center chips and increasing software ecosystem.
Sector Snapshot: Chipmakers Under Fire
| Company | % Change | Catalyst |
|---|---|---|
| NVIDIA (NVDA) | -6.75% | AI optimism waning |
| AMD | -4.12% | Competitive pricing pressure |
| Intel (INTC) | -6.73% | Margin and growth worries |
| TSMC | -2.98% | China risks, lower orders forecast |
The chip sector as a whole is facing pressure as investors reassess near-term demand vs. long-term hype.
Technical Analysis: Where Is NVDA Headed?
- Support: $92 (today’s low), next key level at $88
- Resistance: $98–$100 zone (failed to hold today)
The Relative Strength Index (RSI) is approaching the oversold level (~34), indicating potential for a technical bounce if macro sentiment stabilizes.
However, any recovery will depend heavily on NVIDIA’s forward guidance and clarity around sustained AI growth.
What’s Next for NVIDIA Investors?
Near-Term:
- Expect volatility to persist as traders digest macro data and prepare for Q1 earnings season.
- Watch for sentiment drivers including Fed commentary, bond yields, and global chip shipment reports.
Long-Term:
- NVIDIA still has dominant market share in GPU-based AI infrastructure.
- Data center expansion, LLM partnerships, and growing enterprise AI deployments support the long-term thesis.
But current prices reflect high growth expectations—leaving little room for disappointment.
Earnings and Events to Watch
- NVIDIA Q1 FY2025 Earnings – Date expected in late May
- Partner Announcements – Updates with OpenAI, Meta, and Microsoft on LLM infrastructure
- China Regulation Risks – Ongoing US export controls could affect NVDA’s global exposure
These catalysts will shape both short-term stock price action and investor confidence in the AI growth narrative.
NVIDIA Stock Price Correction Signals Cooling in AI Mania
The NVIDIA stock price drop of 6.75% on April 4 is a loud signal from the market that even the hottest names need to deliver more than hype. While the AI revolution is real, expectations may have outpaced execution in the near term.
This correction, though sharp, could reset the stage for more sustainable growth—provided NVIDIA continues to deliver top-tier performance in its next earnings cycle.
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