{"id":46054,"date":"2025-12-16T11:35:00","date_gmt":"2025-12-16T11:35:00","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/12\/16\/nvidia-stock-megaphone-pattern-points-to-a-rebound-despite-ai-jitters\/"},"modified":"2025-12-16T11:35:00","modified_gmt":"2025-12-16T11:35:00","slug":"nvidia-stock-megaphone-pattern-points-to-a-rebound-despite-ai-jitters","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/12\/16\/nvidia-stock-megaphone-pattern-points-to-a-rebound-despite-ai-jitters\/","title":{"rendered":"Nvidia stock megaphone pattern points to a rebound despite AI jitters"},"content":{"rendered":"
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The Nvidia stock price has crashed in the past few weeks as investors remain concerned about the artificial intelligence industry after last week\u2019s Oracle and Broadcom earnings. NVDA dropped to $175, down sharply from the year-to-date high of $211, meaning it has erased over $750 billion in value.<\/p>\n

Why the Nvidia stock price has crashed<\/h2>\n

Nvidia and other top companies in the artificial intelligence industry have plunged in the past few days as jitters have accelerated.<\/p>\n

These jitters accelerated last week after Oracle and Broadcom published their quarterly results. Oracle, which has become a major player in the sector, has dropped by over 45% from its highest point this year.<\/p>\n

While the company\u2019s remaining performance obligations (RPO) surged to over $525 billion, the company\u2019s debt has soared and its free cash flow has turned negative. Worse, the company has some maturities coming up, raising concerns about its ability to pay.<\/p>\n

Broadcom stock dropped as investors questioned its growth trajectory even as it announced huge deals, including one with Anthropic, one of the biggest competitors to OpenAI.<\/p>\n

Therefore, the ongoing Nvidia stock price crash is not necessarily because of its fundamentals. Instead, it is a thematic drop as investors dump companies in the industry, including infrastructure players like CoreWeave, IREN, and Bitfarms.<\/p>\n

Nvidia has become a bargain <\/h2>\n

The ongoing Nvidia stock price crash has left behind a company that is undervalued by most measures.<\/p>\n

Data compiled by SeekingAlpha shows that the company has a forward price-to-earnings ratio of 38, much lower than the five-year average of 57. Its Non-GAAP PE ratio stands at 37, also much lower than the five-year average of 45.<\/p>\n

Nvidia\u2019s forward PE ratio is much higher than the S&P 500 Index\u2019s average of 23. However, this difference is justified by the company\u2019s strong revenue and profitability growth and its moat in the artificial intelligence industry.<\/p>\n

The most recent results<\/a> showed that the company’s growth accelerated in the third quarter as demand for its chips soared. It made $57 billion in revenue, up sharply from the $46 billion it delivered in the second quarter and the $35 billion it made in the same period in 2024.<\/p>\n

The company\u2019s profitability also accelerated in the period, with its net profit jumping to $31 billion, up sharply from the $19 billion it made last year.<\/p>\n

The ongoing jitters about the AI bubble are justified. However, chances are the Nvidia will continue growing as companies in the industry are not slowing down their deployments.<\/p>\n

As a result, Wall Street analysts believe<\/a> Nvidia’s business will continue doing well in the foreseeable future. For example, the average estimate is that the company\u2019s revenue will come in at $65 billion in the fourth quarter, bringing its annual figure to $213 billion.<\/p>\n

This estimate does not include shipments of the 200 chips that the Trump administration authorized last week. As such, if these shipments start, there is a possibility that the revenue will be much better than expected, a move that will justify the current valuation metrics.<\/p>\n

Nvidia share price technical analysis <\/h2>\n
NVDA<\/a> stock chart | Source: TradingView<\/figcaption><\/figure>\n

The daily timeframe chart shows that the Nvidia stock price has plunged in the past few months, moving from the year-to-date high of $211 to the current $175. It has even moved slightly below the 50-day and 100-day Exponential Moving Averages (EMA), which is a risky move.<\/p>\n

However, on the positive side, the stock has formed a rising broadening wedge, which is also known as a megaphone. It is now along the lower side of the megaphone pattern.<\/p>\n

Therefore, the most likely scenario is where the stock rebounds, potentially to the upper side of wedge, which is at $211. This target is about 21% above the current level. On the other hand, a move below the support level at $170 will invalidate the bullish outlook.<\/p>\n

The post Nvidia stock megaphone pattern points to a rebound despite AI jitters<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The Nvidia stock price has crashed in the past few weeks as investors remain concerned about the artificial intelligence industry after last week\u2019s Oracle and Broadcom earnings. NVDA dropped to $175, down sharply from the year-to-date high of $211, meaning it has erased over $750 billion in value. Why the Nvidia stock price has crashed <\/p>\n","protected":false},"author":1,"featured_media":46055,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-46054","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/46054","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=46054"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/46054\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/46055"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=46054"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=46054"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=46054"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}