Is Nvidia stock gearing up for a 40% correction?

Core Viewpoint - Nvidia stock (NASDAQ: NVDA) is experiencing a significant downward trend despite a positive Q4 FY 2025 earnings report, with shares ending February below the 200-day moving average, a bearish signal last seen in January 2023 [1] Group 1: Stock Performance - As of March 4, Nvidia stock was priced at $114, reflecting an 8.69% decline on that day and a total drop of 12.37% over the past week, resulting in year-to-date losses of 15.11%, marking a 6-month low for the shares [2] - The stock has underperformed the S&P 500 since the beginning of the year, with NVDA shares down 15.11% compared to a 0.32% decline in the index [12] Group 2: Technical Analysis - A technical analyst has suggested a potential further decline of nearly 40%, with a target price of $70, which would represent a 38.59% drop from current levels [3][5] - The $110 mark is identified as the next support level; a close below this could lead to further declines, while a close above could trigger a rebound towards $120 [11][12] Group 3: Analyst Opinions - Bernstein analyst Tom O'Malley reaffirmed a price target of $185, noting that the stock is trading below parity relative to the SOX semiconductor index and at the lowest premium compared to the S&P since 2016, encouraging investors to buy the dip [9] - Despite bearish technical signals, Wall Street analysts remain largely bullish on Nvidia, citing robust demand across various industries and a solid track record of exceeding expectations [8][10]