What is behind Nvidia stock's recent drop in value today

Traders Union
All News
Financial News
Nvidia slides 2.30% today to $218.47

Highlights

Nvidia posted record quarterly revenue of $81.6 billion, surging 85% year-over-year, with Data Center revenue up 92% to $75.2 billion.
The board expanded buybacks by $80 billion and raised the quarterly dividend, returning $20 billion to shareholders despite selling pressure in the stock.
Technicals show bullish long-term structure and a projected five-day range of $213.33 to $226.18, with a 75% probability of upside continuation.

Shareholder rewards rise as record revenues meet selling pressure

Nvidia reported record first-quarter fiscal 2027 revenue of $81.6 billion, an 85% year-over-year increase, with Data Center revenue reaching $75.2 billion, up 92% from the previous year. Net income amounted to $58.3 billion and free cash flow totaled $48.6 billion. The board approved an additional $80 billion for share repurchases and increased the quarterly dividend to $0.25 per share, accompanied by the return of about $20 billion to shareholders in the quarter, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, points out that Nvidia’s strong earnings and record revenues have failed to insulate the stock from immediate selling pressure. He notes that intraday weakness, a downside gap, and mixed oscillator readings undermine the significance of longer-term bullish signals. Kharitonov warns that persistent profit-taking could drag the stock below $213.33 and challenge key support. He remains critical of the overbought indicators and divergence between short- and long-term momentum. "Despite stellar fundamentals, I remain cautious — market optimism may already be fully priced in and the risk of sharp corrections cannot be ignored."

Viktoras Karapetjanc, expert at Traders Union, views Nvidia’s results as a testament to robust business fundamentals and sector leadership. He highlights the 85% revenue surge, an aggressive share repurchase plan, and dividend hike as powerful signals for long-term investors. Karapetjanc believes that the bullish structure remains intact above all moving averages. "Nvidia is poised for further growth, and I see the $226.18 level as the next milestone for buyers to target."

Short-term dips persist as daily sell-off contrasts broader uptrend

On the daily chart, nearest dynamic support from the Ichimoku Kijun sits at $215.64, while immediate resistance is at the 50-day moving average near $195.49 or the next key round number above the current price. Momentum signals are mixed: the Moving Average Convergence Divergence (MACD) points to continued bullish momentum, and the Average Directional Index (ADX) confirms a prevailing upward bias, but both the Relative Strength Index (RSI) and Commodity Channel Index (CCI) show the market in a buy or neutral zone without reaching extreme levels. The Bull/Bear Power (BBP) suggests that buyers still dominate overall, although the forecast shifts to overbought territory on the daily timeframe. Short-term oscillators like Stochastic RSI highlight local oversold pressure, creating a divergence with higher timeframes and broader momentum signals. Nvidia’s price is currently down $5.13 or 2.30% for the session, with a downside gap of about $0.75 and quoting near the daily low. Intraday volatility stands at 2.36%. Sellers have applied consistent pressure after the open, and this move is at odds with underlying bullish momentum on longer timeframes.

Previously it was reported that Nvidia’s strong earnings and technical momentum underpinned a broadly optimistic outlook for the stock. With mixed signals emerging as sellers exert intraday pressure despite robust fundamentals and longer-term trend strength, investors should watch for a decisive move beyond the current consolidation range to determine the next directional bias.

Source of Data: NVDA Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.