As discussions rage over Nvidia’s (NVDA) recent decline, it’s helpful to review some key data, thanks to BTIG technical analyst Jonathan Krinsky. These numbers shed light on why Nvidia stock has slowed.
Krinsky notes: “NVDA recently traded about 100% above its 200-day moving average. Since 1990, the largest gap any US company has seen above this average, despite being the largest company, was Cisco’s (CSCO) 80% in March 2000, which was its all-time high. This shows how exceptional NVDA’s position is.”
Interestingly, last week, Nvidia briefly overtook Microsoft (MSFT) as the largest company in the United States. A similar event occurred on March 24, 2000, when Cisco surpassed Microsoft, marking a peak for both Cisco and the Nasdaq.
Krinsky also compares profits: “In the last five years, NVDA has grown 4,280%, while Cisco had a 4,460% increase in the five years before its peak. In the last 18 months, NVDA has grown 827%, which is double Cisco’s profit in the same period through 2000.”
This perspective helps us understand that stocks do not continually rise and highlights Nvidia’s remarkable market performance.