Nvidia Dives Despite Earnings Beat; China Chip In Deep Freeze. Is Nvidia A Buy Or Sell Now?

Nvidia (NVDA) tumbled more than 5% Thursday, reversing lower after a positive initial reaction to the artificial intelligence chip company’s earnings report. Is Nvidia stock a buy or sell now?

Ahead of the report posted late Wednesday, Nvidia stock cleared a trendline entry at 194.49 within a base. Thursday’s sell-off broke a four-session win streak and pulled the shares sharply under the entry.  The stock’s 5.5% slide, to below 185, was the largest percentage loss since April 16, 2025, according to Dow Jones Market Data.

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Nvidia Stock: Earnings Outstrip Expectations

The AI chip designer’s fourth-quarter earnings soared 82% to $1.62 per share. Sales increased 73% to $68.1 billion. Analysts polled by FactSet expected $1.54 per share on sales of $66 billion. Nvidia’s first-quarter sales outlook of $78 billion also exceeded Wall Street’s estimate of $73 billion.

But the top-notch results were not enough to dispel broader fears about the AI boom, with several of Nvidia’s customers increasing their capital expenditure plans.

Nvidia’s annual tech show, GTC, is scheduled for March 16-19. Nvidia has built a record of reserving announcements of significant technological developments for its March event rather than during its earnings call.

H200 China Chip In Freeze Mode

Nvidia on its earnings call late Wednesday did not offer a China sales outlook. China had cleared purchases of the H200 AI chip for several customers in the country, The Wall Street Journal reported in late January.

“While small amounts of H200 products for China-based customers were approved by the U.S.
government, we have yet to generate any revenue and we do not know whether any imports will be
allowed into China,” Nvidia Chief Financial Officer Colette Kress said during Wednesday’s call, according to a transcript from FactSet.

“We will continue to engage with the U.S. and China governments and advocate for America’s ability to
compete around the world,” Kress said.

The H200 sales approval followed an earlier push by Beijing for Chinese customers to use local chips. That move came as President Donald Trump signed an order imposing a 25% tariff on the H200 chip, which, like a few other select chips, is “transshipped” or imported into the U.S. for use in other countries.

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In 2025, Nvidia shares surged 39% when the chip leader made Wall Street history by becoming the first company to reach a $5 trillion market capitalization. It has since backed off from that valuation to around $4.5 trillion.

Nvidia Stock: Price Performance

In terms of its 12-month price performance, Nvidia has outperformed 82% of all other stocks in Investor’s Business Daily’s database.

Are These Magnificent Seven Stocks A Buy Now?
Alphabet | Amazon | Apple | Meta | Microsoft | Nvidia | Tesla

Funds own 41% of the company’s outstanding shares, according to IBD MarketSurge research. The stock’s Accumulation/Distribution Rating of B- indicates moderate purchases by funds. The rating measures price and volume action over the last 13 weeks.

The AI chip behemoth has a top-level Earnings Per Share Rating of 99. Further, the stock’s all-around strength, or Composite Rating, is 99.

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Is Nvidia Stock A Buy?

Looking at chart signals and technical measures can help investors assess whether Nvidia stock is a buy or sell now.

Shares are testing their 50-day moving average within a base with a 212.19 buy point after the earnings report. Investors can wait for a proper buy point before buying Nvidia stock.

Please follow VRamakrishnan on X/Twitter for more news on the stock market today.

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