Nvidia (NASDAQ:NVDA), which develops GPUs and AI solutions for gaming and data centers, closed Thursday at $184.89, down 5.46%. The stock fell after blockbuster Q4 results and strong guidance failed to ease AI-bubble worries. Investors are watching how sustained AI infrastructure demand translates into future data center growth.
Trading volume reached 351.1 million shares, about 104% above its three-month average of 171.8 million shares. Nvidia IPO’d in 1999 and has grown 450,665% since going public.
How the markets moved today
The S&P 500 (SNPINDEX:^GSPC) slipped 0.53% to 6,909, while the Nasdaq Composite (NASDAQINDEX:^IXIC) fell 1.18% to 22,878 as growth names lagged. Within semiconductors and semiconductor equipment, industry peers Advanced Micro Devices (NASDAQ:AMD) closed at $203.68 (-3.41%) and Intel (NASDAQ:INTC) finished at $45.46 (-3.03%), reflecting broader pressure on AI chipmakers.
What this means for investors
Nvidia’s quarterly earnings once again blew past expectations. The AI leader also predicted another record in the current quarter with about 77% revenue growth compared to last year.
Shares initially popped on the news, as any concerns over growth and profit margins were dismissed. But an overarching worry about an AI bubble persisted and moved the stock lower.
With a forward price-to-earnings ratio only in the low-20’s, today’s drop gives investors another opportunity to buy a leading stock in a booming sector while it remains at a reasonable valuation.
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Howard Smith has positions in Intel and Nvidia and has the following options: short March 2026 $175 calls on Nvidia and short March 2026 $26 calls on Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
