Nvidia’s $340 Billion Slide Puts AI Kingpin on Shaky Ground

Nvidia’s rocket ride just hit some turbulence. The AI chip titan has lost more than $340 billion in market value in just four trading days, tumbling below its all-important 50-day moving average — a red flag for traders who live and die by charts.

On Tuesday, Nvidia shares fell as much as 4% to $167.22, slipping under that $171.02 technical marker for the first time since May. For chart watchers, that break suggests the momentum that carried Nvidia to its $4 trillion market cap might be cooling off — at least for now.

“This shows how the momentum has broken down, and it makes me concerned about the stock over the short term,” said Buff Dormeier, chief technical analyst at Kingsview Partners.

He pointed to $160 as the next safety net, with $145 being the real line in the sand.

“If it breaks under $145, I’d be really concerned about its prospects.”

The sell-off came right after Nvidia’s latest quarterly results. On paper, the numbers were solid:

• Earnings: $1.05 per share (vs. $1.01 expected)
• Sales: $46.74 billion (vs. $46.05 billion expected)
• Buyback: A massive $60 billion program announced

But the kicker was the company’s forecast: revenue of $54 billion for the current quarter. That’s technically above Wall Street’s $53.43 billion consensus — but only barely, and far from the kind of blowout that’s fueled Nvidia’s meteoric run this year.

Adding to the drag, Nvidia reported zero sales of its China-only H20 chip, leaving analysts uneasy about future growth in a market that once accounted for a big chunk of business. The company recently struck a deal to keep selling those chips in China but will hand over 15% of related revenue to the US government — a highly unusual arrangement that’s already raising legal eyebrows.

Despite the pullback, Nvidia is far from a busted story. The stock is still up nearly 78% since April, and at roughly $4.1 trillion, it remains the world’s most valuable company, ahead of Microsoft at $3.72 trillion. Analysts haven’t abandoned ship either — most still see 25%+ upside from here, with many raising their price targets.

But there’s no denying the mood has shifted. Wall Street is weighing geopolitics, China risks, and whether AI infrastructure spending can keep pace with Nvidia’s sky-high valuation.

As Dormeier put it:

“There’s still long-term opportunity, but it seems like it has peaked for the short or intermediate term.”

For now, Nvidia bulls will need patience. The AI darling may still be the king of chips, but the crown is wobbling.

With input from Investor’s Business Daily and Bloomberg.