Nvidia (NVDA) 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.
Nvidia stock dropped 10% below its 10-week moving average, indicating a clear sell signal to either partially lock in profits or completely exit a position with minimal gains. The chip giant has been a key player in the artificial intelligence industry, being the top AI-chip manufacturer.
Shares of 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.
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.