Nvidia stock has fallen from grace as a Wall Street darling. The leading artificial intelligence and chip stock led the market rally this year, but flashed a sell signal to investors last week. Did you get out in time?
Nvidia fueled the Nasdaq's strong performance in 2023 and helped lift chip and related stocks. But it has since toppled.
Nvidia's up-down volume ratio has dropped to 0.9, according to MarketSmith data, which shows demand is waning. The ratio measures total volume on up days vs. total volume on down days over 50-days, with a reading of over 1.0 signifying positive demand for the stock.
Institutional investors are starting to unload shares as shown by the deteriorating IBD Accumulation/Distribution Rating. The rating dropped to a C-, meaning there are now more sellers than buyers, from a B- a month ago, when buyers still outweighed sellers.
Nvidia Stock Starts To Crumble
Nvidia stock fell 6.6% below its 10-week moving average last week and triggered a sell signal.
The stock hit a 52-week high of 502.66 on Aug. 24, after the company reported higher-than-expected July-ended quarterly earnings and sales, and gave higher sales guidance for the current quarter. Shares wavered for several days before starting to pull back. Shares have fallen around 16% from the high, but are still up around 186% for the year.
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