The Stock of Nvidia Ends a Record-breaking Weekly Winning Streak, but Still Stands at a Record Monthly Winning Streak

Nvidia Corp. experienced a notable shift in its stock performance this week, something not seen since the onset of the year—it declined. The shares of the prominent semiconductor manufacturer, NVDA, known for its significant role in artificial intelligence, fell by 4.2% throughout the week, in contrast to the 0.4% gain observed in the S&P 500 index.

‍

This decline marked the first weekly loss for Nvidia's stock since it dipped by 0.9% during the week concluding on January 5th. It put an end to an impressive streak of 11 consecutive weeks of gains, the longest such streak since the company went public in January 1999. Notably, Nvidia's stock had surged by an impressive 92.1% during this streak, surpassing the previous record of nine consecutive weeks that ended in March 3, 2023.

‍

The recent pullback has raised concerns regarding the overextension of not only Nvidia's stock but also other chipmakers and major technology firms. Year-to-date, Nvidia's stock has surged by 82.5%, outpacing the 17.5% climb in the PHLX Semiconductor Index (SOX) and the 10.2% increase in the S&P 500.

‍

Despite this retreat, technical analyst Mark Arbeter, president of Arbeter Investments LLC, maintains a bullish stance on Nvidia's stock in the intermediate term. He emphasizes the historical tendency for such market trends to persist longer than anticipated, suggesting that while momentum may be waning, the overall outlook remains positive.

‍

Although the streak of weekly victories for Nvidia's stock has ended, it still managed to record a notable 14.2% gain in March, marking the fifth consecutive monthly increase. Throughout this streak, the stock has surged by an impressive 121.6%, the longest such streak since the six-month run that concluded in September 2020.

‍

Nicholas Colas, co-founder of DataTrek Research, highlights that despite Nvidia's decline last week, it continues to wield significant influence on the S&P 500. The tech giant contributed 23% to the index's March advance, despite comprising only 29% of the combined index weighting. Over the past 12 months, Nvidia shares have skyrocketed by 234.9%, outperforming the 55.4% rally in the PHLX chip index and the 30.5% gain in the S&P 500.

‍