The Nasdaq has decreased by 2.6%, reaching its lowest point since a tariff pause under former President Trump. Nvidia’s shares have dropped by 5.4%, now priced at $95.98, following reports of issues with an upcoming chip, which could face delays with no resolution visible.
Over the past 10 months, Nvidia’s share price has remained around the $90 mark multiple times. Some suggest it is valued at 17 times its earnings, but concerns linger regarding its sustainability, especially with reports of Huawei releasing a comparable chip soon. This new Huawei chip combines two 910B processors to match the performance of Nvidia’s H100 chip.
Current Market Concerns
Current apprehensions extend to the dominance of the USD and US interests in the global market. The uncertainties in the chip industry and tech equities contribute to the ongoing broad market sell-off.
Given the recent decline in the Nasdaq, which has now returned to levels last seen during the previously announced tariff suspension, there’s been a swift turn in sentiment. Following that backdrop, Nvidia’s 5.4% fall draws particular attention, fuelled by mounting speculation over delays linked to its upcoming chip. The concern here is less about a sharp decline in any single session and more about repeated exposure to unresolved uncertainty, with no technical fix or timeline emerging at this point.
Valuation arguments at 17 times earnings have appeared somewhat disconnected from current sentiment. While Nvidia has repeatedly returned to levels near $90 over the past year, the inability to sustain gains despite the wider AI narrative reflects clear hesitation. This is especially telling when rivals are lining up comparable hardware. Reports suggest Huawei’s updated approach, placing two of its 910B processors together, could mirror the performance of one of the H100s. That sort of direct parity begins to alter previously perceived advantages.
Outside of the chip-related changes, broader concerns are beginning to press down on the wider market, particularly in relation to how global business aligns with US policies and the strength of the dollar. These challenges have intensified and led to pressure that is not confined to one sector. We’ve seen this play out in recent volumes, particularly as investors step back, reassessing exposure not just to tech shares, but also to geographically sensitive revenue streams. Remarks pointing to potential rerouting of supply chains and system-level hardware independence by several large players are not excuses—they’re directional warnings.
Monitoring Volatility And Investor Sentiment
We should take this moment to monitor support levels and volatility pricing more carefully. Acknowledging repeated visits to similar price points reveals more than just coincidence. A price that refuses to break higher despite favourable coverage suggests restraint. Not all restraint is bearish, but when paired with delay in product development and fresh competition from a geopolitically protected manufacturer, the pattern becomes clearer.
When sales or investments rely on future assumptions and these assumptions no longer command wide confidence, repricing becomes inevitable. In that context, overexposure could chart the wrong course. Tightening the focus on implied volatility clusters and option skew across weekly tenors might give us a clearer sense of when uncertainty has been overbought.
For now, risk calculations must lean more heavily on what is observable—delivery pipelines, comparative specs, and investor response in real time. Monitoring gap fills from recent downturns, as well as options activity around next month’s expiry, can help define where resilience re-emerges.
