If Nvidia (NVDA) stock is a great proxy for the broader stock market, then this AI leader may be leading the rest of the market even lower from its recent doldrums.
Nvidia sports the “most important chart in the world” right now (see below), according to BTIG technical strategist Jonathan Krinsky.
He explained, “Nvidia is the largest stock in the world. It just broke lower from a nine-month trading range, meaning there are a lot of trapped buyers. This has risk towards $150, so needless to say, it’s likely the most important chart in the world.”
Nvidia shares currently trade at $168, or 10% above where Krinsky thinks the stock could fall. The chipmaker’s stock price has tanked 15% from its recent peak.
Despite a solid GTC 2026 conference in early March, where CEO Jensen Huang revealed a $1 trillion revenue pipeline through 2027, Nvidia stock has been hit by a “sell the news” reaction from investors who are questioning how much growth is already baked into its premium valuation.
The company faces other headwinds as well. While Nvidia dominates the AI “training” chip market, there is growing uncertainty about how quickly it can monetize the shift to AI inference (running models in production).
Analysts are waiting for tangible proof that Blackwell Ultra shipments will translate into immediate earnings beats and that the recent Grok acquisition makes strategic sense.
“Nvidia … continues to ramp Blackwell production (GB200+GB300) while simultaneously preparing for the imminent ramp of its Vera Rubin platform (on track for the second half of 2026),” JPMorgan analyst Harlan Sur wrote in a note. “Even so, the stock response [post-earnings] suggests investors were left wanting more, which we think is tied to continued uncertainty around the growth trajectory for Nvidia’s data center business in 2027.”
Meanwhile, the ongoing volatility from Operation Epic Fury has sparked a massive rotation out of high-beta tech stocks like Nvidia and Meta (META) and into “physical” safe havens like energy and defense.
As of Mar. 29, the S&P 500 (^GSPC), Nasdaq Composite (^IXIC), and Dow Jones Industrial Average (^DJI) have all officially entered correction territory, marking declines of at least 10% from their recent record highs. The Nasdaq was the first to succumb on Mar. 28.
Brian Sozzi is Yahoo Finance’s Executive Editor and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email [email protected].
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