Nvidia (NVDA) Stock Decline

Nvidia Corp. (NASDAQ: NVDA) fell sharply in price on March 30, 2025, and closed at $135.57, which is roughly 9% lower than the previous day’s close. This was just one part of a sell-off throughout the technology sector because of rising tensions regarding trade as well as disappointing earnings for the biggest tech corporations. Concerns over the overvaluation of the chip sector also sent the stock lower. The investors were particularly worried about how much Nvidia would depend on the fluctuating markets and how that would affect its possible future.

Nvidia’s stock fall preceded report that China’s startup and competitor, DeepSeek, uses AI models like American rivals, who bought the models at fire-sale prices and are running with not latest chips. Report triggered global AI panic and US market loss, and Nvidia shares fell 17% on March 31, wiping over $500 billion of market capitalization.

In spite of all these hurdles, Nvidia’s future is bright, say analysts. Stacy Rasgon of Bernstein commented that Nvidia’s pipeline remains strong and competition is still way out. Mark Lipacis of Evercore ISI commented that he has been informed by large data center owners that Nvidia is eight years ahead in the competition.

In the next two years, Nvidia anticipates revenue growth of 57% to over $205 billion this year, but at a decelerating rate from last year. While its strong financial situation and technological advantage position it strongly for long-term growth in the next two years, the company continues to be pinched by increasing competition and geopolitics.

Short of that, Nvidia’s March 30, 2025, share drop was triggered by the perfect storm of trade tensions, red-hot competition from rising AI rivals, and fear of overvaluation.