Nvidia Slides Amid Continued War Woes; Is Nvidia A Buy Or Sell Now?

Nvidia (NVDA) slipped Friday as the prolonged U.S.-Iran war weighed on investors with President Donald Trump holding off on attacks on Iran’s energy plants until April 6 while the Strait of Hormuz — a critical waterway for global oil supply — remained closed. Is Nvidia stock a buy or sell?

On Wednesday, The Wall Street Journal reported that Nvidia-backed startup Reflection was in the process of raising $2.5 billion in a funding round that values the company at $25 billion. Reflection’s open-source model challenges China-based DeepSeek.

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However, Nvidia faces competition from China’s Huawai, which said Sunday its Ascend 950PR processor delivered nearly 2.87 times the performance of the H200. Nvidia has resumed production of its H200 chip for Chinese companies after delivering an earnings beat late February.

On its fourth-quarter earnings call in February, Nvidia did not offer a China sales outlook. China had cleared purchases of the H200 AI chip for several customers in the country, The Wall Street Journal reported in late January.

The H200 sales approval followed an earlier push by Beijing for Chinese customers to use local chips. That move came as President Donald Trump signed an order imposing a 25% tariff on the H200 chip, which, like a few other select chips, is “transshipped” or imported into the U.S. for use in other countries.

Meanwhile, at Nvidia’s GTC annual tech show this month, Chief Executive Jensen Huang delivered a strong outlook for the company’s artificial intelligence chips, saying he expects sales of Blackwell and Vera Rubin chips to hit $1 trillion by 2027. The projection is double his previous forecast of $500 billion through 2026.

Nvidia Stock: Earnings Outstrip Expectations

Nvidia beat analyst expectations for its own fourth-quarter results. However, investors sent the stock tumbling 5.5% on Feb. 26, marking its worst session since mid-April 2025, according to Dow Jones Market Data.

The AI chip designer’s earnings soared 82% to $1.62 per share, and sales increased 73% to $68.1 billion. Analysts polled by FactSet had expected $1.54 per share on $66 billion in sales. Nvidia’s first-quarter sales outlook of $78 billion exceeded Wall Street’s estimate of $73 billion.

But the top-notch results were not enough to dispel broader fears about the AI boom, with several of Nvidia’s customers increasing their capital expenditure plans.

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In 2025, Nvidia shares surged 39% when the chip leader made Wall Street history by becoming the first company to reach a $5 trillion market capitalization. It has since backed off from that valuation to around $4.3 trillion.

Nvidia Stock: Price Performance

In terms of its 12-month price performance, Nvidia has outperformed 75% of all other stocks in Investor’s Business Daily’s database.

Are These Magnificent Seven Stocks A Buy Now?
Alphabet | Amazon | Apple | Meta | Microsoft | Nvidia | Tesla

Funds own 41% of the company’s outstanding shares, according to IBD MarketSurge research. But the stock’s Accumulation/Distribution Rating of D- indicates weak recent purchases by funds. The rating measures price and volume action over the last 13 weeks.

The AI chip behemoth has a top-level Earnings Per Share Rating of 99. Further, the stock’s all-around strength, or Composite Rating, is a nearly-ideal 98.

Is Nvidia Stock A Buy?

Looking at chart signals and technical measures can help investors assess whether Nvidia stock is a buy or sell now.

Shares remained below their 200-and 50-day moving averages on Friday. It is better to wait for the stock to clear those levels before buying it.

Please follow VRamakrishnan on X/Twitter for more news on the stock market today.

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