Death Cross Pattern Appears for NVIDIA Stock: Buy, Hold, or Sell?

Core Viewpoint - NVIDIA Corporation is currently facing regulatory challenges and a bearish chart pattern, leading to questions about the future of its stock and whether investors should hold or sell [1]. Stock Performance and Technical Indicators - NVIDIA's stock dropped 5.7% recently, with a death cross pattern emerging, indicating a potential downtrend as the 50-day moving average fell below the 200-day moving average [2][3]. - The stock closed at $113.76, with the 50-DMA at $125.86 and the 200-DMA at $127.72, marking a significant technical indicator for investors [3]. Regulatory Environment - Stricter regulations in China are impacting NVIDIA's sales, particularly concerning its H20 chips, although enforcement of these rules is currently lax [4]. - The U.S. government's addition of several Chinese companies to a trade blacklist is also adversely affecting NVIDIA's sales [3]. Financial Strength and Market Position - NVIDIA reported a 114% revenue increase to $130 billion in fiscal 2025 and anticipates a 65% year-over-year sales increase in the first quarter [8]. - The company maintains a net profit margin of 55.9%, surpassing the semiconductor industry's average of 48.6%, indicating strong profitability [8]. Future Outlook - Despite current volatility, the demand for NVIDIA's next-generation Blackwell chips and its dominant market share in GPUs (over 80%) are expected to drive future share price increases [6][7]. - The stock is considered to have a strong support level at $100; a drop below this could indicate a long-term downward trend [5]. Investment Strategy - Current stakeholders are advised to hold onto NVIDIA stock due to its strong financials and market position, while new investors should wait for a more favorable entry point [10][11].