Nvidia Breaks Key Level After CoreWeave's Loss Widens; Is Nvidia A Buy Or Sell Now?

Nvidia (NVDA) stock was dropping Friday, extending losses from its tumble in the previous session despite the chipmaker’s better-than-expected earnings report. Is Nvidia stock a buy or sell now?

Shares were undercutting their 50-day moving average within a base. Shares on Thursday backed off an initial post-earnings increase and fell 5.5%, its worst session since mid-April 2025, according to Dow Jones Market Data.

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Shares of Nvidia fell Friday following a quarterly update from CoreWeave (CRWV), a cloud computing services company backed by Nvidia. CoreWeave’s fiscal 2026 capital spending forecast of $30 billion to $35 billion was larger than expected. Also, its operating margins forecast fell far short of estimates.

CoreWeave lost 89 cents per share, widening from its loss of 34 cents per share a year earlier and wider than the loss of 67 cents per share analysts had anticipated. Nvidia recently increased its stake in CoreWeave by $2 billion.

Nvidia Stock: Earnings Outstrip Expectations

The AI chip designer’s fourth-quarter earnings soared 82% to $1.62 per share. Sales increased 73% to $68.1 billion. Analysts polled by FactSet expected $1.54 per share on sales of $66 billion. Nvidia’s first-quarter sales outlook of $78 billion also exceeded Wall Street’s estimate of $73 billion.

But the top-notch results were not enough to dispel broader fears about the AI boom, with several of Nvidia’s customers increasing their capital expenditure plans.

Nvidia’s annual tech show, GTC, is scheduled for March 16-19. Nvidia has built a record of reserving announcements of significant technological developments for its March event rather than during its earnings call.

H200 China Chip In Freeze Mode

Nvidia on its earnings call late Wednesday did not offer a China sales outlook. China had cleared purchases of the H200 AI chip for several customers in the country, The Wall Street Journal reported in late January.

“While small amounts of H200 products for China-based customers were approved by the U.S.
government, we have yet to generate any revenue and we do not know whether any imports will be
allowed into China,” Nvidia Chief Financial Officer Colette Kress said during Wednesday’s call, according to a transcript from FactSet.

“We will continue to engage with the U.S. and China governments and advocate for America’s ability to
compete around the world,” Kress said.

The H200 sales approval followed an earlier push by Beijing for Chinese customers to use local chips. That move came as President Donald Trump signed an order imposing a 25% tariff on the H200 chip, which, like a few other select chips, is “transshipped” or imported into the U.S. for use in other countries.

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In 2025, Nvidia shares surged 39% when the chip leader made Wall Street history by becoming the first company to reach a $5 trillion market capitalization. It has since backed off from that valuation to around $4.5 trillion.

Nvidia Stock: Price Performance

In terms of its 12-month price performance, Nvidia has outperformed 77% of all other stocks in Investor’s Business Daily’s database.

Are These Magnificent Seven Stocks A Buy Now?
Alphabet | Amazon | Apple | Meta | Microsoft | Nvidia | Tesla

Funds own 41% of the company’s outstanding shares, according to IBD MarketSurge research. The stock’s Accumulation/Distribution Rating of B- indicates moderate purchases by funds. The rating measures price and volume action over the last 13 weeks.

The AI chip behemoth has a top-level Earnings Per Share Rating of 99. Further, the stock’s all-around strength, or Composite Rating, is 99.

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Is Nvidia Stock A Buy?

Looking at chart signals and technical measures can help investors assess whether Nvidia stock is a buy or sell now.

Shares have fallen below their 50-day moving average within a base with a 212.19 buy point on Friday. Investors can wait for a proper buy point before buying Nvidia stock.

Please follow VRamakrishnan on X/Twitter for more news on the stock market today.

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