What's Going On With Nvidia's Stock?

Nvidia Corporation NVDA shares are trading lower Friday. Earnings from ASML Holdings N.V. ASML and Taiwan Semiconductor Manufacturing Company Ltd. TSM have put pressure on the semiconductor sector. 

The Details:

ASML reported worse-than-expected earnings earlier in the week, followed by TSMC's reduced outlook for the chip market, overshadowing the company's Q1 results.

Shares of semiconductor companies are falling as investors consider the latest data and the possibility of reduced revenues as the first-quarter earnings season gets underway.

ASML and TSMC shares are down approximately 10% over the past five days.  Nvidia shares have lost more than 11% this week and are trading below the $800 mark at $784.06 at the time of publication. 

Super Micro Computer, Inc. SMCI shares are down more than 21% Friday after the company announced its third-quarter earnings release date and did not provide preliminary estimates as it has in the past. Investors are concerned that this foreshadows less-than-stellar financial results from the company ahead. 

Related News: What’s Going On With Google Parent Alphabet Stock Ahead Of Earnings?

Should I Sell My NVDA Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of Nvidia have gained 186.87% year to date. This compares to the average annual return of 76.76%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. NVIDIA stock currently has an RSI of 38.47, indicating neutral conditions.

For analysis tools, charting data and access to exclusive stock news, check out Benzinga PRO. Try it for free.

NVDA Price Action: According to Benzinga Pro, Nvidia shares are down 8.65% at $774.81 at the time of publication Friday.

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