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Nvidia Stock Performance Snapshot December 2025
Why is Nvidia stock going down today surges as the top search query amid NVDA’s 3.6% intraday decline to $177.52 following Oracle’s earnings report. Despite 28.3% year-to-date gains, shares trade 14.3% below the $207.04 52-week high after November’s brutal 12.6% drop the worst monthly performance since early 2025. Why is Nvidia stock going down today directly ties to AI sector volatility as investors reassess hyperscaler spending sustainability.
Oracle Earnings Spark AI Bubble Fears
Why is Nvidia stock going down today begins with Oracle’s disappointing quarterly results and shocking $50 billion fiscal 2026 capex guidance up $15 billion from prior estimates. As a major Nvidia GPU buyer, Oracle’s weaker cloud performance raises red flags about excessive AI infrastructure investments without matching revenue returns. Nvidia plunged 3.4% immediately post-report, dragging AMD (-4.2%) and Broadcom (-2.8%) in sympathy selling across AI chipmakers.
Google Gemini 3 TPU Training Success
Google’s Gemini 3 large language model widely regarded superior to OpenAI and Anthropic counterparts trained entirely on proprietary TPUs, not Nvidia GPUs. Why is Nvidia stock going down today connects to this development challenging Nvidia’s “must-have” narrative for frontier AI training. TPUs prove cheaper to produce and operate for hyperscaler workloads, prompting questions about Nvidia’s premium pricing sustainability.
Meta Platforms Google TPU Negotiations
Reports confirm Meta negotiating multi-billion dollar Google TPU purchases for 2027 data centers, accelerating why is Nvidia stock going down today pressures. Combined with Amazon Trainium, Microsoft Maia, and Oracle custom silicon, hyperscalers diversify away from Nvidia’s 80-90% AI accelerator dominance. This shift threatens Nvidia’s CUDA ecosystem lock-in advantages long-term.
Post-Earnings Profit Taking Pressure
Nvidia’s blockbuster Q3 delivered SaaS-like gross margins and record data center revenue growth, yet shares erased gains and declined 8% post-earnings. Why is Nvidia stock going down today reflects profit-taking amid Blackwell production ramp concerns and H100 inventory buildup questions. Cash flows equaling 98% of net income raised sustainability doubts despite headline beats.
Broader Semiconductor Sector Selloff
Why is Nvidia stock going down today mirrors industry weakness with TSMC (-3.8%), Samsung (-5.1%), and SMH ETF (-2.9%) declines post-Oracle. November’s 12.6% Nvidia slump signaled peaking AI infrastructure cycles as investors rotate from growth leaders toward value sectors. Cyclical pressures confirm why is Nvidia stock going down today extends beyond company-specific news.
Reason 6: Valuation Fatigue at Record Multiples
Trading at 45x forward earnings despite explosive growth, why is Nvidia stock going down today stems from “AI bubble” warnings after the $3.5 trillion market cap peak. Limited real-economy AI impact justifies skepticism around hundreds of billions in capex. Forward data center spending forecasts face ROI scrutiny from analysts.
Federal Reserve Policy Uncertainty
Stronger economic data slashed December rate cut odds from 85% to 65%, hammering high-multiple growth stocks. Why is Nvidia stock going down today ties to persistent inflation above 2.5% targets and rising 10-year yields compressing Nvidia’s premium valuation. Fed tightening fears amplify AI spending sustainability concerns.
Semiconductor Sector Performance Comparison
| Company | Today’s % Change | YTD Return | Forward P/E | AI Revenue % |
|---|---|---|---|---|
| Nvidia (NVDA) | -3.6% | +28.3% | 45x | 85% |
| AMD | -4.2% | +22.1% | 38x | 45% |
| Broadcom | -2.8% | +35.4% | 32x | 60% |
| TSMC | -3.8% | +18.7% | 25x | 70% |
| Oracle | -5.1% | +12.3% | 28x | 25% |
Technical Analysis and Key Support Levels
Why is Nvidia stock going down today shows NVDA breaching $175 support after $180 resistance failure, targeting $165 Fibonacci retracement. RSI oversold at 32 signals potential bounce potential, though MACD bearish crossover warns deeper correction. Traders monitoring why is Nvidia stock going down today watch 50-day moving average ($182) resistance closely.
Wall Street Analyst Consensus Ratings
“Strong Buy” consensus prevails with $195 average price target (10% upside). Morgan Stanley cautions AI bubble risks but maintains overweight rating. Why is Nvidia stock going down today prompts Piper Sandler CUDA moat reaffirmation despite TPU threats. 66% institutional ownership reflects long-term conviction.
Historical Nvidia Decline Recovery Patterns
Current 14% pullback mirrors March 2020 COVID crash (300% recovery in 18 months) and 2022 bear market (250% rally since). Why is Nvidia stock going down today aligns with December historical +2.5% average suggesting seasonal relief. Post-earnings median 4.2% recovery within 10 days typical.
Nvidia Long-Term AI Growth Projections
Global data center capex forecasts escalate from $600 billion (2025) to $3-4 trillion (2030), sustaining GPU demand. Why is Nvidia stock going down today contrasts Blackwell’s 2-generation technology lead and TensorRT-LLM optimizations reducing cluster needs 30%. CUDA switching costs protect 85% AI revenue dominance.
Hyperscaler Capex Sustainability Analysis
Oracle’s $50 billion guidance signals continued aggressive AI buildout despite near-term fears. Why is Nvidia stock going down today reflects 10-15% custom chip market share risk over 3 years, though Nvidia software advantages maintain premium positioning across remaining workloads.
Investor Sentiment and Options Market Signals
Put/call ratio spikes to 1.6 indicate bearish positioning amid why is Nvidia stock going down today. Social sentiment neutralizes from November bullish peaks across platforms. ETF flows favor diversified semiconductor exposure over single-name Nvidia bets.
Key Recovery Catalysts Ahead
Blackwell Q1 2026 volume shipments, positive hyperscaler earnings guidance, and Fed rate cut confirmation could reverse why is Nvidia stock going down today momentum. CES 2026 enterprise AI platform announcements target expansion beyond cloud infrastructure.
Conclusion
Why is Nvidia stock going down today comprehensively explained through Oracle earnings fallout, Google TPU breakthroughs, Meta chip diversification, profit-taking, sector rotation, valuation pressures, and Fed uncertainty. Despite turbulence, Nvidia’s structural AI leadership endures via CUDA dominance, Blackwell roadmap, and multi-trillion dollar capex pipeline positioning rebound opportunity into 2026.
FAQs
Why is Nvidia stock going down today after Oracle earnings?
$50B fiscal 2026 capex raised unsustainable AI spending fears across Nvidia GPU customers.
Why is Nvidia stock going down today due to Google TPUs?
Gemini 3 trained entirely on cheaper TPUs challenges Nvidia GPU pricing power narrative.
Does Meta’s Google chip deal explain why is Nvidia stock going down today?
Multi-billion TPU negotiations signal hyperscaler diversification from Nvidia dependence.
What valuation concerns drive why is Nvidia stock going down today?
45x forward P/E prompts AI bubble warnings despite record gross margins.
Why is Nvidia stock going down today amid sector weakness?
AMD (-4.2%), TSMC (-3.8%) declines confirm cyclical AI infrastructure rotation.
Technical outlook for why is Nvidia stock going down today?
$165 Fibonacci target with RSI oversold (32) signals short-term rebound potential.
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