Nvidia Stock Price Crashes 6.73% in April 16 Pre-Market Session
Nvidia stock price fell sharply in pre-market trading on April 16, down 6.73% to $104.65. The tech heavyweight's slump signals deepening concerns over AI stock overvaluation and earnings expectations.
Key Highlights:
Santa Clara/New York, April 16 (IST):
Nvidia Corp. (NASDAQ: NVDA) is facing intense sell pressure in early U.S. trade hours, with the Nvidia stock price tumbling 6.73% to $104.65 in April 16’s pre-market session. The graphic-chip giant, once considered the bellwether of the AI stock rally, is now grappling with a sharp valuation reset.
This marks one of the largest pre-market percentage declines for Nvidia in the past 6 months and comes ahead of its Q1 2025 earnings, slated for later this month.
Nvidia Pre-Market Summary – April 16, 2025
| Metric | Value |
|---|---|
| Pre-Market Price | $104.65 |
| Previous Close | $112.20 |
| Change | -$7.55 (-6.73%) |
| 52-Week High | $153.13 |
| 52-Week Low | $75.61 |
| Market Cap | $2.74 Trillion |
| P/E Ratio | 38.19 |
| Dividend Yield | 0.036% |
Nvidia is now trading nearly 32% off its all-time high, raising serious questions about AI stock valuations, especially amid macro tightening and earnings re-ratings.
What’s Driving Nvidia’s Pre-Market Crash?
1. AI Euphoria Cooling Off
The first signs of fatigue in the AI trade are emerging. While Nvidia has been the biggest beneficiary of the Generative AI boom, investors are now questioning:
- The scalability of enterprise AI use cases
- Whether AI infrastructure spend has peaked in the short term
- Overreliance on hyperscalers like Microsoft, Google, and Meta for demand
2. Valuation Reset Ahead of Earnings
Nvidia’s P/E ratio of 38.19 is starting to look stretched, especially after recent downgrades from several Wall Street analysts. Any earnings or revenue miss in the upcoming quarterly results could cause a full-blown correction.
Analysts from Bernstein, Barclays, and Citi have flagged:
- High channel inventory
- Slower datacenter chip deployment cycles
- Overexposure to China’s regulatory bottlenecks
3. Broader Tech Sector Weakness
Nvidia isn’t alone. On April 16, Tesla, Amazon, Apple, and Microsoft are also down in pre-market:
| Stock | Pre-Market % Drop |
|---|---|
| Tesla | -2.50% |
| Amazon | -1.33% |
| Apple | -1.46% |
| Microsoft | -0.97% |
But Nvidia’s sharp drop outpaces them all, reflecting company-specific pressures rather than general sector movement alone.
Technical View – Nvidia Enters Correction Territory
| Indicator | Value | Outlook |
|---|---|---|
| Pre-Market Price | $104.65 | Below 50-day MA |
| Immediate Support | $102.90 | May 2024 resistance turned support |
| Psychological Level | $100.00 | If broken, signals downtrend continuation |
| Resistance Level | $110.00 | Former support now resistance |
The next few trading sessions could decide whether Nvidia is headed into a deep correction or stages a bounce near key support zones.
Wall Street Analyst Commentary – Divided but Wary
| Firm | Rating | Target Price | Remarks |
|---|---|---|---|
| Goldman Sachs | Buy | $125 | “AI GPU cycle remains strong but priced in” |
| Morgan Stanley | Neutral | $115 | “Valuation not compelling at these levels” |
| Wedbush | Outperform | $135 | “Correction is healthy; long-term AI trend intact” |
| UBS | Hold | $110 | “Q1 earnings may be peak quarter” |
Most houses are still bullish long-term, but near-term caution is evident across the board.
Q1 2025 Earnings – Why the Stakes Are Sky High
Consensus Expectations:
| Metric | Estimate |
|---|---|
| Revenue | $23.2 Billion |
| EPS (Adjusted) | $5.15 |
| Datacenter Revenue | $18.1 Billion |
| Gaming Segment | $2.9 Billion |
| Gross Margin | ~74.5% |
Any miss in datacenter revenue, which is over 75% of Nvidia’s topline, could further deepen the decline.
Investor Red Flags
1. China Trade Risk
- Nvidia’s H100 and A100 GPUs face export restrictions
- Growing domestic GPU alternatives in China (Huawei Ascend)
2. Dependency on Cloud Titans
- Microsoft Azure, Google Cloud, and Amazon AWS account for a large share of orders
- Any spending moderation could affect sales guidance
3. Supply Chain Disruption
- TSMC and memory partners signal delays in advanced packaging
- Inventory buildup at distributors reported in Q4
Is Nvidia Stock Still Worth Holding?
Despite near-term turbulence, Nvidia remains a pivotal player in the tech landscape:
Growth Catalysts:
- Enterprise AI adoption in healthcare, finance, and robotics
- Omniverse expansion for digital twin simulation
- Progress on custom ARM CPUs for datacenters
- Leading position in AI inference chips
But valuations must cool before the stock becomes a long-term accumulation play, say most analysts.
Peer Comparison – Nvidia Lags Big Tech in April 16 Pre-Market
| Company | Pre-Market Drop | Market Cap | P/E Ratio |
|---|---|---|---|
| Nvidia | -6.73% | $2.74 Trillion | 38.19 |
| Tesla | -2.50% | $796.2 Billion | 124.67 |
| Apple | -1.46% | $3.04 Trillion | 32.13 |
| Microsoft | -0.97% | $2.87 Trillion | 31.07 |
| Amazon | -1.33% | $1.91 Trillion | 32.50 |
Nvidia’s sharp drop is sector-leading, suggesting a re-rating may be underway.
What Can Reverse the Slide?
To reclaim upward momentum, Nvidia needs:
- Earnings beat and positive forward guidance
- Announcements of new AI chip orders (Blackwell, B100 architecture)
- Expansion of its Automotive AI and Edge Inference portfolio
Until then, technical traders warn of heightened volatility and lower highs formation in coming days.
Nvidia Stock Price Suffers Brutal Pre-Market Blow
The Nvidia stock price collapse in the April 16 pre-market session underscores how fragile tech investor confidence has become. While long-term AI trends remain strong, the market appears to be entering a valuation discipline phase.
Unless Nvidia delivers an exceptional Q1 2025 report and provides bullish forward-looking signals, we may witness more downside pressure in the near term.
Investors are advised to remain cautious, track support levels near $100, and avoid chasing the stock amid volatility.
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