Nvidia stock (NASDAQ: NVDA) slid on Friday as traders locked in gains after a strong stretch that had once again made the AI-chip leader a consensus “crowded” winner.
The move came as part of a broader bout of profit-taking across semiconductors, with the Philadelphia Semiconductor Index also under pressure.
Nvidia stock pullback came as investors weighed rich expectations against a market backdrop that has turned more sensitive to rates, inflation data, and the near-term payoff from the AI boom.
Nvidia stock: Profit-taking and rotation weigh
Friday’s move fit a familiar pattern in momentum stocks, when a widely owned leader stops making fresh highs, investors who bought earlier often sell to protect gains.
That dynamic has been playing out across AI-linked equities, where swings have picked up as traders debate whether Big Tech’s rising capital expenditures translate cleanly into incremental profits.
The bigger context is that Nvidia’s stock performance has cooled even as the AI infrastructure buildout continues.
Nvidia is up less than 1% since the start of the fourth quarter and has been largely range-bound after hitting a record high in late October, a notable slowdown after its nearly 40% rise in 2025.
In other words, investors have been paying up for the story for years, and now they want proof that the next leg of spending can sustain the growth curve.
Valuation also becomes a louder topic during pullbacks.
Nvidia is at about 24 times forward earnings, close to the Nasdaq 100 and at a slight premium to the S&P 500, while still well below Nvidia’s five-year average multiple of 62-70.
That mix helps explain why the stock can feel “expensive” to some investors and “not obviously cheap” to others, even after bouts of selling.
Read More: Nvidia stock stuck around $190: HBM costs, China risks are hemming in the AI giant
Analysts weigh in: pause or shift?
Analysts largely described the weakness as a positioning reset, not a fundamental break.
JoAnne Feeney of Advisors Capital Management told Bloomberg that investors are increasingly questioning whether revenue growth can keep up with the scale of capex.
At the same time, analysts have not been rushing to rewrite their numbers.
Wall Street estimates for Nvidia’s sales and earnings have remained relatively stable since tech giants rolled out their latest spending plans, with many analysts effectively waiting for Nvidia’s own commentary.
That “wait for confirmation” posture can create air pockets in the stock as buyers step back, sellers take profits, and the shares drift until a new catalyst resets expectations.
The market backdrop is also not helping.
For now, Friday’s drop looks like profit-taking layered on top of a market that is re-pricing risk day to day.
The next test is whether Nvidia can re-accelerate sentiment with clear signals on demand and margins, or whether the stock stays range-bound as investors demand stronger evidence that AI capex is translating into durable earnings power.
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