Nvidia’s AI-Led Stock Decline Sparks Broader Market Concerns

Nvidia shares closed below the critical $171 support level for the first time since May, marking a 7% four-day plunge that erased $340 billion in market value. The selloff reflects cooling investor appetite for AI-focused equities following the company's disappointing revenue forecast. Despite maintaining a $4.1 trillion valuation—still above Microsoft's $3.72 trillion—traders now question whether the AI HYPE cycle has peaked.

Technical analysts identify $160 as the next key support level, with $145 representing a make-or-break threshold from June's rebound. The pressure extends beyond Nvidia, with global equities facing headwinds from geopolitical tensions and sector rotation. Kingsview Partners' Buff Dormeier notes the breach of the 50-day moving average signals deteriorating momentum: "This breakdown concerns me about the stock's near-term prospects."