Nvidia (NVDA) stock experienced a significant drop on Friday, falling below its 50-day average as the overall market also declined. As of Friday afternoon, Nvidia stock was down approximately 22% from its peak in March.
Shares of the AI chip giant, Nvidia, fell by 10% to 761 in afternoon trading, joining Super Micro Computer (SMCI) stock in leading the market downturn. Both stocks showed sell signals in Friday’s trading.
Nvidia has been a key player in the artificial intelligence industry, being the top AI-chip manufacturer. However, this did not prevent it from dropping 10% below its 10-week moving average on Friday. This clear sell signal indicates that investors should either partially lock in profits or completely exit a position with minimal gains. The stock traded as low as 298.06 at the end of May 2023, after reaching a high of 974 on March 8 this year, which was its last buy point before its decline starting on March 26.