On Friday, Nvidia (NVDA) experienced a significant drop in stock value as it fell below its 50-day average, joining the overall market decline. As of afternoon trading, Nvidia stock was down approximately 22% from its peak in March.
In addition to Nvidia, shares of Super Micro Computer (SMCI) also dropped by 10% on Friday, leading the market downturn and showing sell signals. The AI chip giant has been a key player in the artificial intelligence industry for years and is known for being the top AI-chip manufacturer.
The drop in Nvidia stock price was significant as it fell 10% below its 10-week moving average, indicating a clear sell signal for investors to either partially lock in profits or completely exit their position with minimal gains. This news likely caused concern among investors who have been closely watching Nvidia’s performance in the market.
Nvidia has had a volatile year so far, with its stock reaching a high of 974 on March 8 this year before declining starting on March 26 and trading as low as 298.06 at the end of May 2023. Despite this recent setback, Nvidia remains an important company with continued growth potential in the AI industry.