The US stock market has suffered a great deal since the start of the year. Volatility has been the prevailing theme, as a host of companies have struggled to build off of rather impressive 2024 performances. Chief among them may be Nvidia (NVDA), which has seen its ongoing sell-off push the stock down 27%, with traders now pondering whats next for the stock.
The AI chipmaker had been one of the big winners of last year, jumping more than 170%. Indeed, surging demand for artificial intelligence led many to bet big on its development. However, that halted when the calendar turned. For a myriad of reasons, its momentum has stagnated, but could it be set to return?
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Nvidia Sell-Off Drives Stock from 2025 High: Can It Rebound?
Early Friday morning, Nvidia saw its shares jump 1.4% in what was a deviation from an ongoing trend. That increase was a reversal from an ongoing sell-off that greatly affected the stock’s performance so far this year. Moreover, it was a far cry from the performance that saw the company’s shares increase more than 600% since the beginning of 2023.
The company hasn’t performed in a way to justify its falling value. In its most recent Q4 earnings report, it reported a 78% jump in revenue, reaching $39 billion. Moreover, its adjusted earnings per share surpassed estimates, reaching $0.89. Additionally, its Q1 guidance projected revenue to reach $43 billion, higher than the analyst projection of just over $42 billion.
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Indeed, Nvidia (NVDA) has seen the recent sell-off drive it 27% down from its 2025 high, so what can be next? Well, the chipmaker has a history of volatility. Specifically, two times in the last decade it has dropped 50% or more. First in 2018, after a year-long surge amid tensions in China. Additionally, it happened in 2022, with tech stocks facing a much bigger crash at that time.
That makes it difficult to predict what could be next, but analysts still believe it will turn around. Currently, the stock has a median price target of $175, which is more than 56% above its share price right now. Moreover, this high-end projection sits at $235, according to CNN data. That represents a more than 110% upside for the stock, as experts are holding firm to the belief that a rebound is set to take place at some point this year.
