Benzinga - by Zaheer Anwari, Benzinga Contributor.
- Nvidia's stock experienced a significant drop on Friday, showcasing the unpredictability and risks associated with high-momentum stocks.
- Prior to this downturn, Nvidia had been on a remarkable growth trajectory, with its stock reaching an all-time high.
This decline, following a period of remarkable growth, serves as a cautionary example of the swift and sometimes unpredictable nature of stock market fluctuations.
Nvidia was enjoying a remarkable wave of success prior to the recent reversal in its stock performance. Reaching an all-time high on Thursday at $974, the company saw its shares soar by a staggering 75% since the start of the year, with the peak growth rate touching an impressive 98%.
Such swift climbs are not uncommon in the tech sector, however, the subsequent 11% decline from this peak serves as a stark reminder of the risks associated with pursuing rapid growth. It is now imperative for investors, especially those with significant stakes in AI, to carefully monitor the stock's performance. The next level of support is the daily 20 simple moving average, which is currently positioned around the $800 round number.
At present, the current decline is likely a correction, unless there are more significant downward moves below previous support levels. Investors should exercise patience and be prepared to make the most of the bullish momentum when it returns.
After the closing bell on Friday, March 8, the stock closed at $875.28, trading down by 5.98%.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.
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