Nvidia Stock Declines 21% from Recent Peak Amid Market Volatility

Nvidia Under Pressure as Tech Stocks Continue to Decline

Shares of chipmaking giant Nvidia fell 1% to $166.21 apiece on Monday, 30 March, marking the third consecutive session of decline. The stock last traded at these levels in early September 2025. The three-day sell-off has pushed the tech major down 6% in March, causing it to enter bear market territory. Nvidia is now down 21% from its November 2025 high of $211.34 apiece, despite strong fundamentals, including improving margins and expectations of robust profit growth.

Investors are increasingly concerned that Nvidia's booming revenue from AI accelerator sales may not be sustainable. Meanwhile, anxiety around AI-driven disruption has weighed on software companies and other sectors. The sell-off is not limited to Nvidia, with broader technology stocks under pressure since peaking in October. The escalating conflict involving Iran has further dampened risk appetite.

Nasdaq 100 Enters Correction Territory

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The tech-heavy Nasdaq 100 fell nearly 2% in the previous session to 23,135, taking its decline to about 11% from its October peak. This marks the first time since April 2025 that the index has entered correction territory, defined as a fall of at least 10% from recent highs.

Big Tech drags have deepened the Nasdaq's fall, with Microsoft and Meta Platforms among the biggest contributors. Microsoft has declined 34% since its October peak, while Meta Platforms has fallen 29%. Amazon is down 23% from its recent high, Apple has slipped 15%, and Tesla has dropped 28% since peaking in December 2025.

Amazon's plans to spend $200 billion this year on data centres, chips, and related infrastructure have raised investor concerns that its aggressive AI investments may not generate adequate near-term returns. Overall, US tech giants are expected to invest more than $650 billion in data centres and AI infrastructure this year.

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Despite leading the recent sell-off, tech giants continue to enjoy a positive outlook on Wall Street. Earnings growth is expected to outpace the broader S&P 500 this year, while valuations have become more attractive compared to a few months ago. Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta, and Tesla are projected to deliver profit growth of 19% in 2026, according to Bloomberg Intelligence. In comparison, the remaining S&P 500 companies are expected to post earnings growth of around 16%. The Nasdaq 100 is currently trading at 21 times estimated earnings, down from a peak of 28 times in October and now at a slight discount to its decade-long average.