NVIDIA Corp. (NASDAQ: NVDA) shares dropped sharply in Friday’s session, falling 7.9% to $93.76, down $8.05 from the previous close of $101.80. The drop erased billions in market capitalization, dragging the stock to one of its worst single-day performances in recent months.
The selloff comes amid a broader pullback in tech stocks as global markets reel from escalating tariff tensions and signs of economic slowdown. NVIDIA, a major beneficiary of the artificial intelligence boom, is now facing renewed scrutiny over its valuation amid rising macro uncertainty.
Key stock metrics as of April 4 (2:43 PM ET):
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Current Price: $93.76
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Previous Close: $101.80
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Day’s Range: $92.11 – $100.13
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Market Cap: $2.29 trillion
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P/E Ratio: 31.95
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Dividend Yield: 0.04%
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52-Week Range: $75.61 – $153.13
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Avg Volume: 295.62 million
Why is NVIDIA stock falling?
1. AI rally fatigue
After months of bullish momentum, the AI-driven tech surge appears to be losing steam. Investors are beginning to question whether chip demand will keep pace with lofty expectations. Analysts warn that continued outperformance in earnings is essential to justify NVIDIA’s high valuation multiples.
2. Broader tech market sell-off
Markets are grappling with the aftermath of U.S. President Donald Trump’s sweeping tariffs. The resulting fears of recession and tighter monetary policy have triggered a sell-off across high-growth sectors, including semiconductors.
3. Profit-taking
NVIDIA surged over 50% in the first quarter of 2025 alone. With mounting uncertainty and upcoming earnings season risks, traders are choosing to lock in profits.
NVIDIA’s next earnings call will be closely watched by investors looking for reassurance about the AI chip cycle’s longevity in an increasingly volatile market.
